Working Capital Gap Explained using examples from Dell and Amazon. What is it? How do you manage it? How do you measure it? How do you improve cash flow? Why is Amazon so unique? These are some of the questions that are answered here.
A firm's options for raising capital depend on its size, life cycle stage, and growth prospects. For early stage firms, venture capital is typically used. More established firms may sell securities through a general cash offer or rights offer. Going public through an initial public offering is another option. Underwriters act as intermediaries between companies and public investors. Rights offerings allow existing shareholders preemptive rights to purchase new shares and help avoid dilution of shareholder value that could otherwise occur when new shares are issued.
Apa yang dimaksud dengan pasar modal syariah? Pasar modal syariah merupakan kegiatan pasar modal yang tidak bertentangan dengan prinsip syariah di Pasar Modal.
Apa peran pasar modal syariah? Pasar modal syariah memiliki 2 (dua) peran penting, yaitu:
Sebagai sumber pendanaan bagi perusahaan untuk pengembangan usahanya melalui penerbitan efek syariah.
Sebagai sarana investasi efek syariah bagi investor Pasar modal syariah bersifat universal, dapat dimanfaatkan oleh siapapun tanpa melihat latar belakang suku, agama, dan ras tertentu.
Apakah bedanya pasar modal syariah dengan pasar modal secara umum? Pasar modal syariah merupakan bagian dari Industri Pasar Modal Indonesia. Secara umum, kegiatan pasar modal syariah sejalan dengan pasar modal pada umumnya. Namun demikian, terdapat beberapa karakteristik khusus pasar modal syariah yaitu bahwa produk dan mekanisme transaksi tidak boleh bertentangan dengan prinsip syariah di pasar modal.
Dokumen tersebut membahas tentang kecurangan, pengendalian internal, dan kas. Secara singkat, dibahas mengenai definisi kecurangan dan pengendalian internal, prinsip-prinsip aktivitas pengendalian internal yang meliputi penentuan tanggung jawab, pemisahan tugas, prosedur dokumentasi, pengendalian fisik, verifikasi internal independen, dan pengendalian sumber daya manusia, serta penerapan prinsip-prinsip pengendalian internal pada penerimaan dan pen
Dokumen tersebut membahas tentang standar dan kerangka akuntansi yang mencakup karakteristik akuntansi, tujuan laporan keuangan, organisasi penyusun standar internasional seperti IASB dan FASB, serta kerangka konseptual yang mencakup asumsi dasar, prinsip dasar, dan kendala dalam penyusunan standar akuntansi.
A firm's options for raising capital depend on its size, life cycle stage, and growth prospects. For early stage firms, venture capital is typically used. More established firms may sell securities through a general cash offer or rights offer. Going public through an initial public offering is another option. Underwriters act as intermediaries between companies and public investors. Rights offerings allow existing shareholders preemptive rights to purchase new shares and help avoid dilution of shareholder value that could otherwise occur when new shares are issued.
Apa yang dimaksud dengan pasar modal syariah? Pasar modal syariah merupakan kegiatan pasar modal yang tidak bertentangan dengan prinsip syariah di Pasar Modal.
Apa peran pasar modal syariah? Pasar modal syariah memiliki 2 (dua) peran penting, yaitu:
Sebagai sumber pendanaan bagi perusahaan untuk pengembangan usahanya melalui penerbitan efek syariah.
Sebagai sarana investasi efek syariah bagi investor Pasar modal syariah bersifat universal, dapat dimanfaatkan oleh siapapun tanpa melihat latar belakang suku, agama, dan ras tertentu.
Apakah bedanya pasar modal syariah dengan pasar modal secara umum? Pasar modal syariah merupakan bagian dari Industri Pasar Modal Indonesia. Secara umum, kegiatan pasar modal syariah sejalan dengan pasar modal pada umumnya. Namun demikian, terdapat beberapa karakteristik khusus pasar modal syariah yaitu bahwa produk dan mekanisme transaksi tidak boleh bertentangan dengan prinsip syariah di pasar modal.
Dokumen tersebut membahas tentang kecurangan, pengendalian internal, dan kas. Secara singkat, dibahas mengenai definisi kecurangan dan pengendalian internal, prinsip-prinsip aktivitas pengendalian internal yang meliputi penentuan tanggung jawab, pemisahan tugas, prosedur dokumentasi, pengendalian fisik, verifikasi internal independen, dan pengendalian sumber daya manusia, serta penerapan prinsip-prinsip pengendalian internal pada penerimaan dan pen
Dokumen tersebut membahas tentang standar dan kerangka akuntansi yang mencakup karakteristik akuntansi, tujuan laporan keuangan, organisasi penyusun standar internasional seperti IASB dan FASB, serta kerangka konseptual yang mencakup asumsi dasar, prinsip dasar, dan kendala dalam penyusunan standar akuntansi.
Perkembangan Akuntansi Syariah dan Standar-standar yang MenyertainyaPutri Yulia R
Perkembangan awal akuntansi syariah dimulai dari sistem administrasi Baitul Maal pada masa pemerintahan Khulafaur Rasyidin untuk mengelola penerimaan dan pengeluaran negara. Konsep ini kemudian berkembang dengan diterapkannya standar akuntansi perbankan syariah di Indonesia sejak tahun 2002 untuk mengatur lembaga keuangan berbasis syariah. Terdapat juga pengaruh pedagang Arab terhadap konsep dasar akuntansi modern melalui interaksi dengan Luc
Ringkasan dokumen tersebut adalah sebagai berikut:
1. Dokumen tersebut membahas tentang definisi, pengertian, perbedaan, dan tujuan laporan keuangan syariah dan konvensional.
2. Juga dibahas mengenai karakteristik kualitatif laporan keuangan dan contoh analisis pembandingan laporan keuangan menggunakan metode common size.
3. Laporan keuangan syariah dan konvensional memiliki perbedaan dalam hal syariah tid
Dokumen membahas rekonsiliasi bank dan beberapa transaksi yang menyebabkan perbedaan saldo bank antara catatan perusahaan dan laporan bank, termasuk setoran dalam perjalanan, cek beredar, penagihan piutang oleh bank, biaya administrasi bank, dan kesalahan pencatatan.
Dokumen tersebut membahas tentang bank umum, bank syariah, dan bank pembiayaan rakyat serta fungsi dan jenis layanan yang ditawarkan. Secara ringkas, dokumen tersebut menjelaskan definisi, prinsip dasar, dan jenis produk perbankan konvensional dan syariah.
EKSI 4203 - Modul 1 Pengertian dan Instrument Pasar ModalAncilla Kustedjo
Dokumen tersebut membahas tentang teori portofolio dan analisis investasi. Secara singkat, dibahas mengenai konsep pasar modal, instrumen pasar modal seperti saham, obligasi, reksa dana, dan partisipan pasar modal.
Bab 2 perkembangan lembaga keuangan syariahMega Sucia
Dokumen tersebut membahas perkembangan lembaga keuangan syariah di Indonesia dan peranannya di tingkat internasional. Ada beberapa poin penting:
1. IDB memiliki peran penting dalam memenuhi kebutuhan pendanaan negara-negara Islam dan mendukung pertumbuhan lembaga keuangan syariah di berbagai negara.
2. Berbagai lembaga internasional seperti AAOIFI dan IFSB mendukung standardisasi dan profesionalisasi perbankan syariah di
Transaksi salam merupakan pembelian barang dimana pembayarannya dilakukan di muka sedangkan penyerahan barang dilakukan di kemudian hari. Salam paralel melibatkan dua transaksi salam antara bank dengan nasabah dan bank dengan petani. Akuntansi pembeli mengakui piutang salam pada saat modal dibayar dan mengakui persediaan pada saat barang diterima, sedangkan penjual mengakui kewajiban salam pada saat mener
Perkembangan akuntansi di Indonesia dimulai sejak zaman kolonial Belanda, di mana praktik pembukuan sudah dilakukan oleh VOC untuk mencatat transaksi perdagangan rempah-rempah. Selama penjajahan Belanda dan Jepang, sistem pembukuan mengikuti praktik negara penjajah. Setelah kemerdekaan, muncul dualisme sistem akuntansi antara praktik Belanda dan Amerika sebelum akhirnya diharmonisasi pada tahun 1980-an.
Dokumen ini membahas sistem akuntansi piutang. Ia menjelaskan prosedur pencatatan dan pelaporan piutang serta metode-metode distribusi penjualan untuk keperluan pelaporan hasil penjualan menurut daerah pemasaran. Dokumen ini juga membahas dokumen pokok dan catatan akuntansi yang digunakan dalam pencatatan piutang serta tugas fungsi akuntansi yang terkait.
Dell had a competitive advantage through its build-to-order working capital policy. It kept low levels of inventory, only 10-20% compared to competitors' 50-70%, by building PCs based on customer orders. This allowed Dell to avoid obsolete inventory, use less capital and space for storage, quickly adapt to changing technology, and gain an advantage with new innovations. Dell's low inventory levels resulted in high turnover and fewer inventory days, lowering its cash conversion cycle.
Perkembangan Akuntansi Syariah dan Standar-standar yang MenyertainyaPutri Yulia R
Perkembangan awal akuntansi syariah dimulai dari sistem administrasi Baitul Maal pada masa pemerintahan Khulafaur Rasyidin untuk mengelola penerimaan dan pengeluaran negara. Konsep ini kemudian berkembang dengan diterapkannya standar akuntansi perbankan syariah di Indonesia sejak tahun 2002 untuk mengatur lembaga keuangan berbasis syariah. Terdapat juga pengaruh pedagang Arab terhadap konsep dasar akuntansi modern melalui interaksi dengan Luc
Ringkasan dokumen tersebut adalah sebagai berikut:
1. Dokumen tersebut membahas tentang definisi, pengertian, perbedaan, dan tujuan laporan keuangan syariah dan konvensional.
2. Juga dibahas mengenai karakteristik kualitatif laporan keuangan dan contoh analisis pembandingan laporan keuangan menggunakan metode common size.
3. Laporan keuangan syariah dan konvensional memiliki perbedaan dalam hal syariah tid
Dokumen membahas rekonsiliasi bank dan beberapa transaksi yang menyebabkan perbedaan saldo bank antara catatan perusahaan dan laporan bank, termasuk setoran dalam perjalanan, cek beredar, penagihan piutang oleh bank, biaya administrasi bank, dan kesalahan pencatatan.
Dokumen tersebut membahas tentang bank umum, bank syariah, dan bank pembiayaan rakyat serta fungsi dan jenis layanan yang ditawarkan. Secara ringkas, dokumen tersebut menjelaskan definisi, prinsip dasar, dan jenis produk perbankan konvensional dan syariah.
EKSI 4203 - Modul 1 Pengertian dan Instrument Pasar ModalAncilla Kustedjo
Dokumen tersebut membahas tentang teori portofolio dan analisis investasi. Secara singkat, dibahas mengenai konsep pasar modal, instrumen pasar modal seperti saham, obligasi, reksa dana, dan partisipan pasar modal.
Bab 2 perkembangan lembaga keuangan syariahMega Sucia
Dokumen tersebut membahas perkembangan lembaga keuangan syariah di Indonesia dan peranannya di tingkat internasional. Ada beberapa poin penting:
1. IDB memiliki peran penting dalam memenuhi kebutuhan pendanaan negara-negara Islam dan mendukung pertumbuhan lembaga keuangan syariah di berbagai negara.
2. Berbagai lembaga internasional seperti AAOIFI dan IFSB mendukung standardisasi dan profesionalisasi perbankan syariah di
Transaksi salam merupakan pembelian barang dimana pembayarannya dilakukan di muka sedangkan penyerahan barang dilakukan di kemudian hari. Salam paralel melibatkan dua transaksi salam antara bank dengan nasabah dan bank dengan petani. Akuntansi pembeli mengakui piutang salam pada saat modal dibayar dan mengakui persediaan pada saat barang diterima, sedangkan penjual mengakui kewajiban salam pada saat mener
Perkembangan akuntansi di Indonesia dimulai sejak zaman kolonial Belanda, di mana praktik pembukuan sudah dilakukan oleh VOC untuk mencatat transaksi perdagangan rempah-rempah. Selama penjajahan Belanda dan Jepang, sistem pembukuan mengikuti praktik negara penjajah. Setelah kemerdekaan, muncul dualisme sistem akuntansi antara praktik Belanda dan Amerika sebelum akhirnya diharmonisasi pada tahun 1980-an.
Dokumen ini membahas sistem akuntansi piutang. Ia menjelaskan prosedur pencatatan dan pelaporan piutang serta metode-metode distribusi penjualan untuk keperluan pelaporan hasil penjualan menurut daerah pemasaran. Dokumen ini juga membahas dokumen pokok dan catatan akuntansi yang digunakan dalam pencatatan piutang serta tugas fungsi akuntansi yang terkait.
Dell had a competitive advantage through its build-to-order working capital policy. It kept low levels of inventory, only 10-20% compared to competitors' 50-70%, by building PCs based on customer orders. This allowed Dell to avoid obsolete inventory, use less capital and space for storage, quickly adapt to changing technology, and gain an advantage with new innovations. Dell's low inventory levels resulted in high turnover and fewer inventory days, lowering its cash conversion cycle.
This document presents a case study on Dell and its business model. It summarizes Dell's history starting as a small PC company in 1984 and adopting a build-to-order model. It analyzes how Dell's low inventory model saved it significant capital compared to competitors. The document also examines how Dell funded its growth internally in the mid-1990s through increasing asset efficiency, reducing liabilities, and decreasing short-term investments. Finally, it provides a forecast for Dell's performance in 1997.
A company must register any charges on its assets or property with the Registrar of Companies (ROC) within 30 days of creating the charge. This includes charges on tangible or intangible assets located in or outside of India. The company must file Form CHG-1 or CHG-9 with the ROC depending on the type of charge. The ROC may allow registration of charges up to 300 days after creation with a condonation. Upon registration, the ROC will provide a certificate. The company must notify the ROC within 30 days of a charge being fully paid or satisfied. It must also notify the ROC of any receiver or manager appointments over charged assets. The company is required to maintain a register of charges in Form CH
Co-operative banks are part of India's banking system and operate according to cooperative principles of self-help and mutual assistance. They mobilize deposits and supply credit to support housing loans and other needs. While their aim is to provide affordable credit to members over profits, co-operative banks still rely on funding from governments, the RBI, NABARD and other banks due to limitations around self-sufficiency and infrastructure weaknesses.
http://panama-repossessed-properties.com/how-about-offshore-banking/
How About Offshore Banking
Individuals may have a variety of reasons why they wish to bank offshore from their original homeland. So how about offshore banking for you? If you are retiring in a tropical paradise you may wish to bank offshore where you live. You may notice that the local currency, such as the Colombian peso, is rising in value versus the US dollar and want to bank your assets where they will grow instead of decrease in value. Or perhaps, setting up a business in a growing economy in Latin American or Asia appeals to you. Some nations have favorable tax laws and it may simply be a matter of looking for a legal tax haven in which to bank your hard earned dollars, pounds, Yen, or Euro. Or an offshore jurisdiction with a degree of privacy associated with bank accounts may be your goal. If you think that what you own is no one else’s business you may want to continue reading How about Offshore Banking.
Offshore Banking for Asset Privacy
In an increasingly international world many live or retire, do business, and do their banking offshore from their nation of origin. Reasons vary from person to person and are many. Individuals bank assets away from their country of origin to avoid being the target of frivolous lawsuits. They place their hard earned assets in tax advantaged offshore jurisdictions to legally protect what they worked so hard to earn. Many choose jurisdictions where corporate and banking laws shield the individual from unnecessary intrusions into their private lives. Many choose offshore to protect the privacy of their assets. Is this costly? Not really. If you deal with a reputable advisor you will find that there are many banking opportunities in many jurisdictions. You simply need to consider what your needs are and pick the most advantageous jurisdiction and bank.
Modern Offshore Banking
Having a bank account in foreign countries does not mean that you need to fly down to Panama every month to deposit your social security check or take out living expenses. As much as a trip to a place like Panama City might be enjoyable it is typically not necessary. A modern offshore bank will allow you to send and receive funds worldwide (SWIFT/BIC). You can carry a debit card which allows you to take money from a cash machine anywhere in the world. A well chosen bank will have an account manager who speaks your language and can help you with any details via email, a phone call, or Skype. If banking offshore and using your debit card as you travel the world appeals to you please continue reading our primer for offshore banking. Remember that you do not need to live where you bank. Pick the best jurisdiction for doing business, the best for living, and the best for travel. And pick the most advantageous for banking offshore.
A bank account in an offshore jurisdiction is often a very private.
Repo rate is the rate at which banks borrow from the RBI to meet loan demand, currently at 7.75%. If RBI raises repo rate, it becomes more expensive for banks to borrow; lowering repo rate makes it cheaper. Reverse repo rate is the rate at which RBI borrows from banks, currently at 6.75%. RBI uses reverse repo to control excess money in banks. SLR requires banks invest a portion of deposits in government securities to restrict lending. CRR requires banks keep a portion of deposits as cash with RBI to ensure risk-free funds and allow RBI to control liquidity and inflation. Current CRR is 4%.
Rodney Chu of Sierra Capital is negotiating the purchase of a 60% equity stake in Arcadian Microarray Technologies for $40 million. Simon has several tasks to help value Arcadian and determine a fair purchase price. Using a constant growth valuation with a 5% rate, Simon values Arcadian at $31 million from Arcadian's view and $22 million from Sierra's view, a difference of $9 million. Simon recommends Sierra use this approach and buy the 60% stake for $22 million.
Offshore banking was formally introduced to the Philippines in 1976 through the promulgation of Presidential Decree No. 1034 and 1035, which established the regulatory framework for offshore banking units (OBUs) and foreign currency deposit units (FCDUs). The Central Bank of the Philippines had previously issued related circulars in 1970 and 1972 to allow foreign currency deposits. OBUs are branches, subsidiaries, or affiliates of foreign banking corporations authorized to conduct offshore banking business involving foreign currency transactions with external sources. OBUs can lend and borrow in any currency except Philippine pesos, with interest rates as high as 20%.
Primus Automation produces factory automation products and services. Avantjet, a jet aircraft manufacturer, wants to acquire an automation system from Primus to cut costs. Avantjet is constrained by its capital-intensive nature and CEO's order to avoid capital expenditures. Primus offers the system through a lease, which could be a capital lease or operating lease. An operating lease provides tax benefits for Avantjet and allows Primus to renew or resell the equipment. Based on net present value calculations for both companies, Primus recommends a 3-year operating lease under Option 3.
This document provides an overview of banks in India. It discusses the concept and history of banking, the role and functions of the Reserve Bank of India as the central bank, different types of banks in India including public sector, private sector and foreign banks, the market structure and top banks. It also describes the services provided by banks, payment facilities like debit/credit cards, growth trends in the banking sector and some key benchmarks.
The document discusses various monetary policy tools used by the Reserve Bank of India (RBI) and their impact on the Indian economy. It explains that RBI uses tools like the cash reserve ratio (CRR), statutory liquidity ratio (SLR), and repo rate to control money supply and fight inflation/deflation. Raising CRR or SLR reduces money available for bank lending, increases interest rates, and slows economic growth. Lowering them has the opposite effects. Similarly, raising the repo rate increases business loan costs, reduces spending and growth, while lowering repo rate stimulates growth. In conclusion, RBI periodically uses these tools to manage liquidity and influence economic activity across sectors and the nation as a whole.
Cooperative and commercial banks in indiaNirav Shah
Commercial banks provide services like deposits, loans, and investments to large businesses while cooperative banks are owned by their members who are both customers and owners. Recent trends in cooperative banks show that many are facing issues with minimum capital requirements and license cancellations, while commercial banks are adopting new technologies and pursuing financial inclusion. Both bank types play important roles in India's economic development through capital formation, banking services to various sectors, and expanding access to more customers.
The document discusses the dominance of multinational corporations (MNCs) in India from the 1960s to the 1990s and the government's efforts to regulate foreign investment and control MNCs. It notes that MNCs controlled over half the assets in India's large industrial sector in the 1960s and 1970s. The Foreign Exchange Regulation Act (FERA) of 1973 aimed to reduce foreign ownership of companies to 40% or less. However, many companies did not fully implement FERA. Reforms in the 1990s gradually relaxed restrictions on foreign investment under FERA and eventually led to its replacement by the more liberal Foreign Exchange Management Act (FEMA) of 1999.
This document provides an overview of key concepts related to valuation of securities, including time value of money, simple vs compound interest, future and present value calculations for single amounts, annuities, and growing annuities. It also discusses bond valuation terminology, risks associated with bonds such as interest rate risk and default risk, and accrued interest calculations. The document uses examples throughout to illustrate various time value of money and bond valuation concepts.
This document provides an overview of the history of bank nationalization in India. It discusses how banks failed in the years following independence due to weak capitalization and lending primarily to secure borrowers. The objectives of nationalizing banks in 1969 were to promote social welfare, control private monopolies, expand banking access, reduce regional imbalances, and prioritize lending to key sectors. Fourteen large commercial banks were initially nationalized. This led to expanded branch networks, increased deposits and lending, and greater orientation toward priority sectors. However, nationalization also resulted in some inefficiencies over time due to political interference.
The document discusses various methods for valuing different types of securities like bonds, preference shares, and equity shares. It explains concepts like book value, market value, and intrinsic value. It provides formulas for calculating the present value of redeemable and irredeemable bonds and preference shares based on interest/dividend payments and redemption value. Methods for valuing equity shares include the dividend capitalization method using models for finite periods, constant dividend growth, and variable dividend growth as well as the earnings capitalization method.
The document discusses various methods for assessing working capital requirements, including the operating cycle method, drawing power method, turnover method, and cash budget method. It also outlines the types of current assets, factors that influence working capital needs, and different forms of working capital financing such as cash credit, bill financing, and non-fund based limits like letters of credit.
Role of RBI in Indian Banking System - ITT PresentationKunal Motwani
Thank you for the presentation. I have learned about the important role played by the Reserve Bank of India in regulating and developing the Indian banking system.
Cash flow is the lifeblood of a startup. Effective cash flow management is fundamental to a business’s success.
As a founder, understanding your cash position is super important and you must have a firm grasp of cash flow mechanics to keep your business operating smoothly. To help you stay on top of it, in this webinar, we’ll break down the basics of cash flow management and provide tips so you can guarantee a healthy cash flow for your business.
With a clear understanding of your company’s cash flow, you can get through downturns and be in a strong position to grow in a new post-COVID environment.
Gaurav Kumar Tonk is seeking a position that allows him to utilize his 9 years of experience in freight forwarding and consolidation. He has a MBA and B.Com and is proficient in accounting software like Tally and MS Office applications. His current role is Manager of Accounts at Sea-Air Consolidators India Pvt Ltd where he oversees finance, accounting and reporting. Previously he held accounting roles with increasing responsibility at various logistics companies in India and Singapore. He has strong communication, accounting and analytical skills.
Back to Basics: Financial Fundamentals for StartupsIntelligent_ly
The document provides an overview of key financial concepts for startups presented by representatives from Silicon Valley Bank. It defines important metrics like revenue, costs of goods sold, expenses, and cash flow. It explains financial statements including the income statement and balance sheet. It recommends that founders become comfortable with basic financial language and tracking their progress towards milestones. It also outlines the additional responsibilities of hired chief financial officers, such as preparing financial projections and statements.
Construction Futures Wales - Managing Cash Flow 2016Rae Davies
This document discusses managing cash flow and developing cash management skills. It begins by introducing the Construction Futures Wales (CFW) program which provides consultancy support. It then discusses how CFW can help companies with cash flow issues through services like business diagnostics and leadership courses. The rest of the document focuses on developing cash management skills, including how to construct cash flow forecasts and monitor key performance indicators. It emphasizes that cash management requires considering other business functions and processes that impact cash flow. Companies are encouraged to take the CFW health check and attend upcoming events to get help improving their cash management.
How to Manage working Capital in Hotel-Basic accounting principles #9 by Din...DINOLEONANDRI
The document discusses managing working capital in hotel industries. It defines working capital as the short-term assets used to fund daily operations, such as cash, receivables, and inventory. It also discusses the cash conversion cycle where cash is used to purchase inventory, turned into receivables through sales, and then collected as cash. Managing working capital involves balancing current assets and liabilities to ensure sufficient short-term funds and liquidity. The goal is to efficiently manage resources and improve cash flow.
Joel Humphrey of Freelandt Caldwell Reilly LLP discusses how to create a sales forecast, developing your budgets and examples of cash flow projections.
Sunitha Dharamkar has over 9 years of experience in finance roles including FP&A, costing, and financial reporting. She has worked for several large companies preparing financial reports, forecasts, analyses, and dashboards. Her skills include proficiency with ERP systems like SAP and financial tools like Excel.
Sky rocket your financial knowledge success!Michael Barker
This document summarizes a 2-hour workshop on profit and loss accounts (P&Ls) and the differences between cash and profits. The workshop covered categories in a P&L, analyzing a P&L against budget and last year, the saying "turnover is vanity, profit is sanity, cash is reality," P&L adjustments, influencing profitability, and financial terminology. Attendees learned why cash is more important than profits, how to work more closely with finance teams, and were quizzed on key points from the workshop.
Introduction to Accounting
Key Concepts
P&L
Balance Sheet
Cash Vs. Accrual
Part 2: Managing An A/E Business
Project Profit
Utilization
Overhead
Cashflow
This resume summarizes the professional experience and qualifications of Ismail Nijam Khani, a senior accountant based in Dubai. He has over 15 years of finance and accounting experience in UAE and Africa, including positions as senior accountant at Diamonds Steel FZCO from 2011 to 2016, and financial controller at KUSCO from 1993 to 2011. His responsibilities have included financial reporting, budgeting, payroll, costing, internal controls, and working capital management. He holds an MBA and BCom and is a skilled accountant seeking to continue leveraging his experience.
Shah Tubes Ltd is a leading steel tubes manufacturer in India with five manufacturing plants. It aims to double production capacity to 1 million tonnes annually by 2015. The document discusses Shah Tube's working capital management, including components, operating and working capital cycles, ratios, and comparison to peers. It provides recommendations like increasing creditors cycle to 60 days, exploring factoring, and using innovative export financing options to improve liquidity and reduce interest costs.
This document discusses working capital management. It defines working capital as the funds used in a business for day-to-day operations, and explains that adequate working capital is important for efficiency and survival. It distinguishes between gross and net working capital, and discusses factors that influence working capital requirements like nature of business and credit terms. The document also outlines methods for estimating working capital needs based on current assets, operating cycles, and cash costs.
Bizness Branding Academy Presents The Financial Puzzle: Fitting the Pieces To...Lady Bizness
The document discusses key financial statements that provide information on a business's financial health and performance. It summarizes the income statement, balance sheet, and cash flow statement. The income statement shows revenues and expenses over a period of time. The balance sheet outlines a business's assets, liabilities, and equity. The cash flow statement reports cash inflows and outflows from operating, investing, and financing activities. Understanding these financial statements is important for business planning, monitoring finances, and identifying issues that could lead to business failure if not addressed.
Lavanya S is seeking a position that allows her to contribute to organizational growth using her 5.5 years of finance and accounting experience. She has worked in roles at Allegis Services India, Capillary Technologies, and TangentTest Technologies where her responsibilities included cash flow reporting, account reconciliations, financial reporting, and processing payments. Lavanya has an MBA in Finance and is proficient in Tally, MS Office, and accounting software.
Financial Statements and Financial ReportingMBA ASAP
Here is a quick summary of the three financial statements: Balance Sheet, Income Statement, and Cash Flow Statement. It also talks about the reason for the Cash Flow Statement based on the effects of Accrual Accounting. There is some on Financial Statement Analysis and the SEC. It also goes over who uses financial statements both inside and outside of a company.
This document discusses short-term financial planning and working capital management. It covers key topics such as:
1) Definitions of working capital, current assets, current liabilities, and the risk-return tradeoff of short-term financing options.
2) The hedging principle of matching temporary assets with temporary financing and permanent assets with permanent financing.
3) Tools for managing working capital like cash conversion cycle, operating cycle, and cash cycle calculations and analysis.
4) Short-term financial policies regarding flexibility of current asset investment levels and sources of current asset financing.
This document provides a summary of an Indian accountant named Dambigan Raja living in Dubai. It outlines his 13 years of experience in areas like treasury, audit, costing, accounts, and financial operations. It details his education and professional experience including his current role as a Senior Finance Executive at Arabian Automobiles Co LLC in Dubai where he is responsible for monthly reporting, budgeting, costing and inventory management. It also outlines his previous role at National Fire Fighting Mfg FZCO as a Senior Finance Executive handling treasury management, trade finance documentation, and cash flow planning.
This document contains projected balance sheets for a company called XYZ for the years ending December 31, 2019, 2020 and 2021. It provides projected figures for assets, liabilities and equity. However, all figures are currently blank as this appears to be a template that will be filled in later with actual financial projections for the company. The document also includes instructions on how to prepare twelve-month cash flow projections, including guidance on estimating cash receipts, cash outlays and other essential operating data.
Optimizing Net Interest Margin (NIM) in the Financial Sector (With Examples).pdfshruti1menon2
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[4:55 p.m.] Bryan Oates
OJPs are becoming a critical resource for policy-makers and researchers who study the labour market. LMIC continues to work with Vicinity Jobs’ data on OJPs, which can be explored in our Canadian Job Trends Dashboard. Valuable insights have been gained through our analysis of OJP data, including LMIC research lead
Suzanne Spiteri’s recent report on improving the quality and accessibility of job postings to reduce employment barriers for neurodivergent people.
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Economic Risk Factor Update: June 2024 [SlideShare]Commonwealth
May’s reports showed signs of continued economic growth, said Sam Millette, director, fixed income, in his latest Economic Risk Factor Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
An accounting information system (AIS) refers to tools and systems designed for the collection and display of accounting information so accountants and executives can make informed decisions.
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In World Expo 2010 Shanghai – the most visited Expo in the World History
https://www.britannica.com/event/Expo-Shanghai-2010
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A toxic combination of 15 years of low growth, and four decades of high inequality, has left Britain poorer and falling behind its peers. Productivity growth is weak and public investment is low, while wages today are no higher than they were before the financial crisis. Britain needs a new economic strategy to lift itself out of stagnation.
Scotland is in many ways a microcosm of this challenge. It has become a hub for creative industries, is home to several world-class universities and a thriving community of businesses – strengths that need to be harness and leveraged. But it also has high levels of deprivation, with homelessness reaching a record high and nearly half a million people living in very deep poverty last year. Scotland won’t be truly thriving unless it finds ways to ensure that all its inhabitants benefit from growth and investment. This is the central challenge facing policy makers both in Holyrood and Westminster.
What should a new national economic strategy for Scotland include? What would the pursuit of stronger economic growth mean for local, national and UK-wide policy makers? How will economic change affect the jobs we do, the places we live and the businesses we work for? And what are the prospects for cities like Glasgow, and nations like Scotland, in rising to these challenges?
1. Working Capital Gap
Shaker Cherukuri, MBA, MSEE
alum: GE, CAT, CMI, Booz
http://ProcessISInc.com/
Ph: (408) 634 - 4754
e-mail: scherukuri@ProcessISInc.com
Copyright 2010, Process IS Inc.
2. ● Assets (Current + LT) = Liabilities (Current + LT) +
Stockholders Equity (SE)
● Current Assets (CA)
● Cash + Marketable Securities (notes etc)
● Inventory (Inv.)
● Accounts Receivables (A/R)
● Pre-Paid Accounts (PPA)
● Current Liabilities (CL)
● Short Term Debt (STD)
● Accounts Payables (A/P)
● Unearned Revenue (UR)
● Stockholders Equity (SE)
● Paid in Capital (PIC)
● Retained Earnings (RE)
● Revenues-Expenses
Basic Accounting Equation….
Copyright 2010, Process IS Inc.
3. ● Working Capital =
● Current Assets (CA) – Current Liabilities (CL)
● If CA > CL, then positive Working Capital
● If CA < CL, then negative working capital
● So what do we want?
Working Capital
Copyright 2010, Process IS Inc.
4. ● Conventional Wisdom
● Positive Working Capital is the norm
● Increase in WC yields negative cash flows
● How do you fund it?
● Cash flow from operations that is greater than the
negative cash flow for working capital
● Cash flow from financing or investing
● Other?
It Depends….
Copyright 2010, Process IS Inc.
5. ● Ratio Analysis to Measure Efficiency
● Day’s Receivables (DR) = (Lower the better)
● Average Accounts Receivable/Average Daily Sales
● Average number of days that elapse between sale and cash collection
● Days’ Inventory (DI) = (Lower the better)
● Average Inventory/Average Daily COGS
● Average number of days of sales that can be made using only the
supply of inventory on hand
● Days’ Payables (DP) = (Higher the better)
● Avg. Acc Payable/Average Daily Purchases
● Inventory Turnover = (Higher the Better)
● Cost of Goods Sold (COGS)/Average Inventory
● Cash Conversion Cycle (CCC) = DR + DI - DP
● Working Capital Gap (lower the better)
● Time between cash outflow and cash inflow
● Higher working capital indicates liquidity
● However, excessive liquidity ties up capital and lowers
overall return on assets.
How do you Quantify (Measure) it?
Copyright 2010, Process IS Inc.
6. ● Use unconventional wisdom and business model
● To fund internal operations using negative working
capital
● Cash Conversion cycle could be negative!
● And get rewarded for it…..
● How do they do that?
Then there is Dell and Amazon…
Copyright 2010, Process IS Inc.
7. ● Current Assets (CA)
● Cash + Marketable Securities (notes etc)
● Inventory (Inv.)
● Accounts Receivables (A/R)
● Pre-Paid Accounts (PPA)
● Current Liabilities (CL)
● Short Term Debt (STD)
● Accounts Payables (A/P)
● Unearned Revenue (UR)
● Stockholders Equity (SE)
● Paid in Capital (PIC)
● Retained Earnings (RE)
● Revenues-Expenses
● Cash Conversion Cycle (CCC) = DR + DI – DP
● WC = CA - CL
Back to Basics Again…
Copyright 2010, Process IS Inc.
8. ● Requires the right business model.
● Automakers do not get paid before they ship. In fact they
have their capital tied in inventory for a long time which is
why they have a huge working capital.
● Amazon and Dell to an extent (since Dell is not just
online/direct anymore as they used to be) get paid before
they ship.
● So extending payables allows them to create a small cash
conversion cycle (could be negative).
● The Unearned revenue, which is a liability, turns the
working capital negative (credit UR and debit cash)
● They pay the suppliers with cash they get from customers
and have some left over all the time in essence getting an
interest free loan from the customers!
So why does everyone not do it?
Copyright 2010, Process IS Inc.
9. ● Yes, you could. However, that usually is a red flag for the
credit rating agencies (i.e. funding operations with cash
from investing or financing activities)
● Amazon does not have to worry about credit rating
downgrade due to A/P increase.
● They are doing it to increase their working capital efficiency
and not because of cash flow constraint.
● They did issue large amount of debt few years ago and
was the reason for Amazon.bom Barron's article.
● Servicing that debt is not an issue anymore and they
successfully used the capital raised to scale themselves
and the rest as they say is history
Could you not do the same using
leverage?
Copyright 2010, Process IS Inc.
10. ● Dell is going through a transformation
● Is losing PC market share
● Due to focus on margin
● Strategic Decision to reposition during a trough in the
economic cycle
● Taken Private by Mr. Michael Dell
● Objective being to move from products to services
● Services growth as envisioned
● Why?
● For profitable growth
● Higher valuation
More: http://ProcessISInc.com/
So what is going on with Dell?
Copyright 2010, Process IS Inc.