Cash Management analysis of Petroleum Sector
Cash Analysis ofThis paper examines the comparative study of cash management analysis of a Local and MNC in petroleum industry of Pakistan. Cash management is one of the fastest growing tools use in the firms especially in financial sectors and MNCs. The objectives and issues of international cash management are similar to domestic cash management. The techniques and methods for managing the cash in effective are looks similar but the implementation of these techniques can be differ. For this purpose study is limited to two major companies of Pakistan i.e. PSO & Shell. For the effectively analysis the paper examine the published Annual Report of recent five years and uses the important tool such as Ratio Analysis, Cash Flows Analysis and Horizontal as well as Vertical analysis. On basis of the past financial trend of both companies the study also analysis on the projected financial statements through which analysis is made whether these companies have adequate liquid cash resources to meet the future obligation. In the last the paper recommends some strategies that these organizations should adopt to identify shortages and surpluses in time to either borrow funds to cover the shortfall or invest excess funds. Key Words: Cash Management, International Cash Management, Domestic Cash Management, Cash to Cash Cycle Analysis, Cash Flow Statements and Ratios analysis, Vertical analysis, Working Capital Analysis, Projected Cash Budget Analysis
