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一盏灯
点亮你的心灵
Working Capital CycleWorking Capital Cycle
• Current Assets vs Current Liabilities
• Inter relationships
• Receive cash earlier
rather than later
• Short working cap...
一盏灯
点亮你的心灵
• Inventory
• Management
• Economic orders
• Accounts Receivable
• Payment terms
• Accounts Payable
• Payment agreements
•...
Thank You
Ali Engelbrecht
SUMMARYSUMMARY
•Working capital – significant implications for profitability
•Working capital – ...
Thank You
Ali Engelbrecht
SUMMARYSUMMARY
•Working capital – significant implications for profitability
•Working capital – ...
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Working Capital Cycle

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Working Capital Cycle
Presentation to WESSA October 2014

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Working Capital Cycle

  1. 1. 一盏灯 点亮你的心灵 Working Capital CycleWorking Capital Cycle
  2. 2. • Current Assets vs Current Liabilities • Inter relationships • Receive cash earlier rather than later • Short working capital cycle = quicker cash received • Cash to Cash cycle – time between paying cash out and receiving cash back • Creditor settlement period • Day’s inventory period • Debtors settlement period
  3. 3. 一盏灯 点亮你的心灵
  4. 4. • Inventory • Management • Economic orders • Accounts Receivable • Payment terms • Accounts Payable • Payment agreements • Interest • Discounts • Overtrading • Too much too quickly • Insufficient long-term capital
  5. 5. Thank You Ali Engelbrecht SUMMARYSUMMARY •Working capital – significant implications for profitability •Working capital – significant implications for liquidity •Investment in working capital relieves demands on capital funding •Returns on working capital •Working capital cycle = assesses the length of time during which funds are tied into working capital
  6. 6. Thank You Ali Engelbrecht SUMMARYSUMMARY •Working capital – significant implications for profitability •Working capital – significant implications for liquidity •Investment in working capital relieves demands on capital funding •Returns on working capital •Working capital cycle = assesses the length of time during which funds are tied into working capital

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