This document discusses working capital management and inventory management. It defines working capital and its sources, including short term sources like factoring, installment credit, bank overdrafts, commercial papers, and letters of credit. Long term sources include equity capital and loans. It also discusses estimating working capital needs using different approaches. The document then defines inventory and its management, including inventory turnover ratio and inventory control techniques like ABC analysis.
this slide will give you a brief idea about cash management and motives for holding cash...its very simple slide...you can easily understand the context with the help of pictures
The matter includes concept and types of Working Capital. Further it explains Optimum Level of Current Assets, Various Approaches to Working Capital Financing. Then Operating Cycle, Cash Cycle and Working Capital Estimation Techniques are discussed.
Working capital management — factors determining working capital — estimation of working capital —inventory management techniques — receivables management — management of cash and marketable securities — techniques of cash management — committees on working capital and their findings and recommendations.
,
cost of capital
,
bond
,
preferred stock
,
factors influencing cost of capital determination
,
cost of new common stock
,
cost of debt components
,
cost of preferred stock
,
components of cost of capital
Scope of Business Research, Business research methods, Meaning of business research, Scope of business research, Production management, Personnel management, Marketing management, Financial management, materials management, General management, Banking management.
Subscribe to Vision Academy for Video Assistance
https://www.youtube.com/channel/UCjzpit_cXjdnzER_165mIiw
Meaning
Types of working capital
Factors of determining working capital
Operating working capital cycle
Importance of operating cycle concept
Internal factors
External factors
General factors
Types of capital structure
Characteristics of security
this slide will give you a brief idea about cash management and motives for holding cash...its very simple slide...you can easily understand the context with the help of pictures
The matter includes concept and types of Working Capital. Further it explains Optimum Level of Current Assets, Various Approaches to Working Capital Financing. Then Operating Cycle, Cash Cycle and Working Capital Estimation Techniques are discussed.
Working capital management — factors determining working capital — estimation of working capital —inventory management techniques — receivables management — management of cash and marketable securities — techniques of cash management — committees on working capital and their findings and recommendations.
,
cost of capital
,
bond
,
preferred stock
,
factors influencing cost of capital determination
,
cost of new common stock
,
cost of debt components
,
cost of preferred stock
,
components of cost of capital
Scope of Business Research, Business research methods, Meaning of business research, Scope of business research, Production management, Personnel management, Marketing management, Financial management, materials management, General management, Banking management.
Subscribe to Vision Academy for Video Assistance
https://www.youtube.com/channel/UCjzpit_cXjdnzER_165mIiw
Meaning
Types of working capital
Factors of determining working capital
Operating working capital cycle
Importance of operating cycle concept
Internal factors
External factors
General factors
Types of capital structure
Characteristics of security
sllde1: meaning of working capital
slide 2: sources of working capital
slide 3: short term sources
slide 4: external sources
slide 5:long term sources
slide 6: regulation of bank finance
side 7: committees
slide 8: tandon committees
slide 9: norms
slide 10: lending norms
slide 11: first method
slide 12: second method
slide 13: third method
slide 14: thank you :)
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
Latino Buying Power - May 2024 Presentation for Latino CaucusDanay Escanaverino
Unlock the potential of Latino Buying Power with this in-depth SlideShare presentation. Explore how the Latino consumer market is transforming the American economy, driven by their significant buying power, entrepreneurial contributions, and growing influence across various sectors.
**Key Sections Covered:**
1. **Economic Impact:** Understand the profound economic impact of Latino consumers on the U.S. economy. Discover how their increasing purchasing power is fueling growth in key industries and contributing to national economic prosperity.
2. **Buying Power:** Dive into detailed analyses of Latino buying power, including its growth trends, key drivers, and projections for the future. Learn how this influential group’s spending habits are shaping market dynamics and creating opportunities for businesses.
3. **Entrepreneurial Contributions:** Explore the entrepreneurial spirit within the Latino community. Examine how Latino-owned businesses are thriving and contributing to job creation, innovation, and economic diversification.
4. **Workforce Statistics:** Gain insights into the role of Latino workers in the American labor market. Review statistics on employment rates, occupational distribution, and the economic contributions of Latino professionals across various industries.
5. **Media Consumption:** Understand the media consumption habits of Latino audiences. Discover their preferences for digital platforms, television, radio, and social media. Learn how these consumption patterns are influencing advertising strategies and media content.
6. **Education:** Examine the educational achievements and challenges within the Latino community. Review statistics on enrollment, graduation rates, and fields of study. Understand the implications of education on economic mobility and workforce readiness.
7. **Home Ownership:** Explore trends in Latino home ownership. Understand the factors driving home buying decisions, the challenges faced by Latino homeowners, and the impact of home ownership on community stability and economic growth.
This SlideShare provides valuable insights for marketers, business owners, policymakers, and anyone interested in the economic influence of the Latino community. By understanding the various facets of Latino buying power, you can effectively engage with this dynamic and growing market segment.
Equip yourself with the knowledge to leverage Latino buying power, tap into their entrepreneurial spirit, and connect with their unique cultural and consumer preferences. Drive your business success by embracing the economic potential of Latino consumers.
**Keywords:** Latino buying power, economic impact, entrepreneurial contributions, workforce statistics, media consumption, education, home ownership, Latino market, Hispanic buying power, Latino purchasing power.
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
The new type of smart, sustainable entrepreneurship and the next day | Europe...
working capital management
1. FINANCIAL MANAGEMENT
DEPARTMENT OF BUSINESS ADMINISTRATION
PREPARED BY:
SOHAM PATADIYA
JAYDEV JADEJA
GOPAL VAGHELA
ANKITA
Guided BY:
Dr. b. c. ajmera
Working capital Management
2. DEFINITION
• Working capital is the financing in a small
business that helps a company pay its trade
creditors and cash flow – it is the finance that
businesses need for their day-to-day trading
operations.
3. “TYPES OF SOURCES OF WORKING CAPITAL”
(1)Short term source of working capital.
(2) Long term source of working capital.
4. Short Term Sources of Working Capital
Financing
FACTORING:
Factoring is a traditional source of short term funding.
Factoring facility arrangements tend to be restrictive and
entering into a whole-turnover factoring facility can lead to
aggressive chasing of outstanding invoices from clients, and
a loss of control of a company’s credit function.
INSTALLMENT CREDIT:
Installment credit is a form of finance to pay for goods or
services over a period through the payment of principal
and interest in regular payments.
5. INSTALLMENT CREDIT:
Installment credit is a form of finance to pay for goods or
services over a period through the payment of principal and
interest in regular payments.
BANK OVERDRAFT:
A bank overdraft is when someone is able to spend more
than what is actually in their bank account. The overdraft
will be limited. A bank overdraft is also a type of loan as the
money is technically borrowed.
6. COMMERCIAL PAPERS :
• A commercial paper is an unsecured promissory note.
Commercial paper is a money-market security issued by
large corporations to get money to meet short term debt
obligations e.g. payroll, and is only backed by an issuing
bank or corporation’s promise to pay the face amount on
the maturity date specified on the note. Since it is not
backed by collateral, only firms with excellent credit
ratings will be able to sell their commercial paper at a
reasonable price.
7. LETTER OF CREDIT:
A letter of credit is a document that a financial
institution issues to a seller of goods or services which
says that the issuer will pay the seller for
goods/services the seller delivers to a third-party
buyer. The issuer then seeks reimbursement from the
buyer or from the buyer’s bank. The document is
essentially a guarantee to the seller that it will be paid
by the issuer of the letter of credit regardless of
whether the buyer ultimately fails to pay. In this way,
the risk that the buyer will fail to pay is transferred
from the seller to the letter of credit’s issuer.
8. Long Term Sources of Working Capital
Financing
EQUITY CAPITAL:
• Equity capital refers to the portion of a company’s equity
that has been obtained (or will be obtained) by trading
stock to a shareholder for cash or an equivalent item of
capital value. Equity comprises the nominal values of all
equity issued (that is, the sum of their “par values”).
Share capital can simply be defined as the sum of capital
(cash or other assets) the company has received from
investors for its shares.
9. LOANS:
A loan is a type of debt which it entails the redistribution
of financial assets over time, between the lender and
the borrower. In a loan, the borrower initially receives
or borrows an amount of money from the lender, and
is obligated to pay back or repay an equal amount of
money to the lender at a later time. Typically, the
money is paid back in regular installments, or partial
repayments; in an annuity, each installment is the
same amount. Acting as a provider of loans is one of
the principal tasks for financial institutions like banks.
10. Principle of working capital
management policy
• The following are the 4 principles of working capital
management policy:
• 1) Principle of equity position: as per this principle every
investment in the current assets should contribute to the
net worth of the firm. The position of current assets can be
well judged by the two ratios; current assets to total asset
and current asset to total sales.
• 2) Principle of cost of capital: different sources of working
capital finance have different cost of capital. Generally
there is –ve relationship between the risk and cost of
capital, which means more the risk less will be the cost and
less the risk more will be the cost. So there should be
balance between the two.
11. • 3) Principle of maturity of payment: as per this
principle the firm should make an every effort
regarding the maturity of payment. In case the period
to pay back the liabilities is short than it becomes
difficult for the firm to meet it obligations in time.
• 4) Principle of risk variation: there is direct
relationship between risk and profitability.
• If the firm makes large investment in current asset→
increase liquidity→ reduce risk→ decrease the
opportunity for gain for the firm.
12. 1. Cash
2. Marketable securities
3. Accounts Receivable
4. Inventory
Components of working capital
13. 1. CASH
• Cash is one of the most liquid and important
components of working capital.
• Holding cash involves cost because the worth of
cash held, after a year will be less than the value
of cash as on today.
• Excess of cash balance should not be kept in
business because cash is a non-earning asset.
• Hence, a proper and judicious cash management
is of utmost importance in business.
14. 2. MARKETABLE SECURITIES
• These securities also don't give much yield to
the business because of two reasons,
(i) Marketable securities act as a substitute for
cash,
(ii) These are used as temporary investments.
• These are held not for hypothetical balances,
but only as a guard against possible shortage
of bank credit.
• Eg. Stock, bond etc…
15. 3. ACCOUNTS RECIEVABLE
• Too many debtors always lock up the firm's resources
especially during inflationary tendencies. This is a two
step account.
• When goods are sold, inventories are reduced and
accounts receivables are created. When payment is
made, debtors reduce and cash level increases.
• Thus, quantum of debtors depends on two things,
• (i) volume of Credit sales
• (ii) average length of time between sales and
collections.
16. • The entrepreneur should determine the
optimal credit standards.
• An optimal credit policy should be established
and the firm's operations should be
continuously monitored to achieve higher
sales and minimum bad debt losses.
17. 4. INVENTORY
• Inventories represent a significant amount of
firm's assets.
• Inventories must be properly managed so that
this investment doesn't become too large, as it
would result in blocked capital which could be
put to productive use elsewhere.
• On the other hand, having too little or small
inventory could result in loss of sales or loss of
customer goodwill. An optimum level of
inventory, therefore, should be maintained.
18. The working capital needs of a business are
influenced by numerous factors:
• Nature of Enterprise
• Manufacturing/Production Policy
• Operations
• Market Condition
• Availability of Raw Material
• Growth and Expansion
• Price Level Changes
• Manufacturing Cycle
19. ESTIMATION OR FORECASTING OF WORKING CAPITAL
• Forecasting of Working Capital refers to the estimation of
Working Capital Requirement for a certain future period. It is
made so as to indicate the amount of Working Capital
required for the future period and the sources from which the
required amount of Working Capital can be financed.
20. PROCEDURE FOR ESTIMATION/FORECASTING OF WORKING CAPITAL
• Calculation of average production: The average estimated
production per period (i.e., per day or per week or per
month) is to be calculated first.
• Calculation of average cost and sales: Secondly, the
average cost of each element of cost as well as the total
cost per period is to be calculated—that is, the cost of
material, wages and overhead per day or per week or per
month and the total cost per month to be calculated. The
profit per period is to be added to the total cost per period
so as to get the sales per period.
21. • Calculation of period of block: The period of block of each
element of cost, such as materials, wages and overheads in
the operating cycle, are to be separately calculated, that is,
the cost of materials blocked in the store, in the production
process, in the finished goods and in the debtors; wages
and overhead costs blocked in the production process, in
the finished goods and in the debtors; and the profit
blocked in the debtors, if the profit element of Working
Capital is considered.
•
22. Following factors should be taken into consideration for the
estimation of Working Capital Requirement:
• Expected annual production quantity.
• Cost of raw materials, wages and overheads per unit of the
product.
• Raw materials holding period in store before use.
• Production-processing period.
• Finished goods storage period before sale.
• Credit period allowed to sundry debtors for credit sales.
• Credit period received from the sundry creditors against the
credit purchases of raw materials.
23. Points to be remembered while estimating WC
• (1) Profits should be ignored while calculating working capital
requirements for the following reasons.
• (a) Profits may or may not be used as working capital
• (b) Even if it is used, it may be reduced by the amount of Income
tax, Drawings, Dividend paid etc.
• (2) Calculation of WIP depends on the degree of completion as
regards to materials, labour and overheads. However, if nothing is
mentioned in the problem, take 100% of the value as WIP. Because
in such a case, the average period of WIP must have been
calculated as equivalent period of completed units.
• (3) Calculation of Stocks of Finished Goods and Debtors should be
made at cost unless otherwise asked in the question.
24. There are various approaches which have been applied in practice
for estimating the working capital needs of a firm. Let’s discuss some
of them in brief.
• 1. Conservative Approach
The conservative approach states that the proportion of
current assets to current liabilities should be kept at 2:1. Is
this proportion is to be kept the firm would be able to meet
its obligations on time and hence its financial solvency would
not be in trouble. However, the limitation of this approach is
that it suggests only quantitative measure. It does not suggest
as to what type of assets are to be included in current assets.
If the current assets contain stock, which is outdated or
receivable which are not collectable, than the amount of
current assets has no meaning. Further, in the present
scenario no firm maintains this ratio, as it’s too difficult for
them to maintain such a high level of current assets.
25. • 2. Components Approach
• Here we take up one of the planning models of working
capital to estimate working capital. The method adopted here
attempts at estimation of working capital and its components
by taking into account, the period for which the various items
remain as stock or as outstanding, the cost structure of
production and annual production. It assumes even
production and even sales, throughout and what is produced
is completely sold.
26. • 3. Operating Cycle Approach
• It was earlier referred to that working capital is also known
as revolving capital. That is, a circular path of conversion/re-
conversion takes place. Consider this example. You start your
business operation with an initial investment. With credit
extended by expense creditors (labor, employees, utilities,
etc.) you start production process. Goods of varying levels of
finish result. This is what we call as work-in-process or work-
in-progress. Once complete processing is done, you get
finished goods. Until these goods are sold, they remain in
stock. Sales may be for cash and/or on credit basis. You need
to wait a little to realize cash from the credit customers.
27. The realized cash is used to pay creditors. You need to
maintain a cash balance for day-to-day transactions as well as
for meeting sudden spurt in payment obligations
accompanied by sluggish cash collections from debtors. Thus
a revolution or cycle from cash to raw materials to Work in
Progress (WIP), to finished goods, to debtors, and back to cash
is taking place. This revolution or cycle is known as operating
cycle.
29. DEFINITION OF INVENTORY:-
• A physical resources that a firm holds in stock with
the intent of selling it or transforming it into a more
valuable state.
30. NATURE OF INVENTORY:- ADDING
VALUE THROUGH INVENTORIES:-
• Quality
• Speed
• Flexibility
• cost
31. FUNCTIONS OF INVENTORY:-
• To meet the anticipated customer demand
• To smooth production requirements
• To decouple operations
• To protect against stock outs
• To hedge against price increases
• To permit operations
• To take advantage of quantity discounts.
36. INVENTORY TURNOVER RATIO:-
It means how many times a company inventory is sold
and replaced ( finished product)
Generally calculated as:-
sales ÷ inventory
However, it may also be calculated as:-
COGS ÷ average inventory
Inventory ratio = value of material consumed during a
period ÷ average value of inventory
during that period.
37. INVENTORY CONTROL:-
Inventory control is the means by which
materials of the correct quality and in correct
quantity are made available as and when required
with due regards to economic in storage and
ordering cost. Here the desired level of inventory can
neither be high or low because high level inventory
will lead to increase in carrying cost while low level
of inventory will lead to increase in ordering cost.
38. ACTIVITY OF INVENTORY CONTROL
NORMALLY INCLUDE THE
FOLLOWING:-
• Determination of the limits of the inventories to be held.
• Determination of the inventory policies.
• Selling out of investments patterns and its regulations as per
individual and collective requirements.
• Follow up to examine the work of inventory policy and effect
change as and when needed.
39. OBJECTIVES OF INVENTORY
CONTROL:-
• To ensure smooth flow of stock of stock
• To provide for required quality of materials
• To control investment in stock
• Protecting against fluctuating demand
• Minimization of risk and uncertainty.
• Minimization of material cost.
40. TECHNIQUES OF INVENTORY
MANAGEMENT:-
ABC Analysis
10% of total number of items carries 70% of the value ‘A’
group items.
20% of total numbers of items account for only about 20%
consumption value - ‘B’ group items.
70% of total number account for only about 10% of
consumption value - ‘C’ group items.