操作的周转资本管理（共25）.ppt

1、FINANCIAL MANAGEMENT DEPT., ALCATEL Operational Working Capital Management-Financing Schemes in Receivables Management Alcatel-2002 Wu YajunFINANCIAL MANAGEMENT DEPT., ALCATELORGANIZATION CHARTSecretaryCredit AnalysisRACTPFCollection ManagementCredit ManagementBanking RelationshipTransactionReportin

2、g&AnalysisInsuranceTreasury DivisionGeneral LedgerCost AccountingA/R AccountingA/P AccountingFixed AssetsAccountingStatistic StatementFinancial Accounting DivisionExpense BudgetControlFixed AssetsBudget Control ReportingFinancial Control DivisionTaxationISDeputy Finance DirectorFinance DirectorF

3、INANCIAL MANAGEMENT DEPT., ALCATELWhat is AccountingtAccounting is a scienceoGAAPoA dialogue between a missile expert and accounting professortAccounting is an artoImportance principaloAccounting estimate, accounting accrual, accounting provision,etctAccounting is a magic (cooking)oEnron eventoWorld

4、com eventFINANCIAL MANAGEMENT DEPT., ALCATELWorking Capital vs OWCtWorking Capital oWorking Capital Balance SheetoWorking Capital = Current Assets - Current LiabilitytOWCoOWC Cash flow statementuoperation activitiesuinvestment activitiesufinancing activitiestCash ConceptFINANCIAL MANAGEMENT DEPT., A

5、LCATELWorking Capital vs OWCtCash is the beginning point and the ending point within the cash flow, but cash does not involve in the cash flow.tCash is not operational asset generallyOWC is concluded as followstOWC = Advance Payment + Inventory +AR - APtOWC yield = sales / average OWCFINANCIAL MANAG

6、EMENT DEPT., ALCATELOWC managementtOWC draws more and more attention in modern society tInventory ManagementoInventory Turnover = COGS /Average InventoryoJust In Time ConcepttAccounts Receivables ManagementoReceivables magt. becomes more and more important now oCredit assessment through business cir

7、culationoFinancing SchemesFINANCIAL MANAGEMENT DEPT., ALCATELCustomer Accept. ProcedureContract&Order ProcessingGoods DeliveryProcedureBilling&ProcessAcct. ReceivableCollection&Follow-up of overdueCredit Magt.CirculationCredit Managementthrough business circulationFINANCIAL MANAGEMENT DE

8、PT., ALCATELReceivables ManagementCredit Value AssessmenttCredit Value Assessmentrfinancial reports analysisrfinancial ratios analysisr5C standards analysisuCharacter, Capacity, Capital, Collateral, Conditionraging analysis of receivables and overduetTake Attribute Analysis Model to assess credit of

9、 the customero Use the three categories information to grade each customeruthe customer characteristicsFINANCIAL MANAGEMENT DEPT., ALCATELReceivables ManagementCredit Value Assessmentuthe customer characteristicscustomer impression, product introduction, product requirement, /the ability to compete,

10、 final user, internal management&control systemuthe priority characteristicsprofitability, product quality, the market drawing, /the market competition status, product guarantee, substitute of the customeruthe credit characteristicspayment history, the credit certificate, net assets&profit g

11、rowth rate, debt status, capital structure ratio, total capitalFINANCIAL MANAGEMENT DEPT., ALCATELAttribute Analysis ModelC ust om er ATot alC redi t Val ue1234561234561234561098*7*6*5*4*3*2*10*score246732056484364557wei ght247457643495747796100wei ght ed score4164228151402018167220212428354542460t

12、he best score2040704050706040304090507040707090601000Custom er CharacteristicsCustom er CharacteristicsPriority CharacteristicsPriority CharacteristicsCredit CharacteristicsCredit CharacteristicsA ttribute A nalysis M odelA ttribute A nalysis M odelFINANCIAL MANAGEMENT DEPT., ALCATELOWC ManagementFi

13、nancing Schemes applied in AlcateltReceivables Financing SchemeoBuyers CreditoLeaseoFactoringoAR TrustoAR SecuritizationoDomestic Letter of CreditoLetter of GuaranteeoCredit InsuranceFINANCIAL MANAGEMENT DEPT., ALCATELFinancing SchemesBuyers CredittBuyers CreditoAlcatel arranges banks to grant our m

14、obile customers the credit line to fund our Accounts Receivable under the commercial contract since the customer is lack of enough cash to cover their accounts payable.tAdvantageoCustomer borrows the loan directly from the banktDisadvantageoCustomer has the right to decide to borrow or notoNeed exte

15、nsive negotiation among the branches of the bankoProfit sharing among the branches of the bankFINANCIAL MANAGEMENT DEPT., ALCATELFinancing SchemesBuyers Credit1. B/C application3. B/Cs need report4. Instruction Plan5. Loan application6. loan report7. loan approval8. Loan lending2. Loan notification9

16、. Pay AlcatelA L C T E LX Bank in sellers areaX Bank,H.Q.X Bank in buyers areaCustomerFINANCIAL MANAGEMENT DEPT., ALCATELFinancing SchemesLeasetLease vs Bridge LeaseoUnder bridge lease, bank plays a very important role which is different from Lease.oAlcatel applies bridge lease. Here Lease company o

17、nly acts as an intermediary, who only receives management fee. The cash flows directly out of or into the bank.tOperational Lease vs Capital LeaseoAccounting method of capital leaseoImprove financial statements by capital leasetLeveraged Lease, sublease and lease backFINANCIAL MANAGEMENT DEPT., ALCA

18、TELFinancing SchemesLease3. Pay Alcatel1.Bridge Leasing Contract5. Rent RepaymentCustomerA L C T E LBankLease Co.4.Pay Magt.fee2.Goods DeliveryFINANCIAL MANAGEMENT DEPT., ALCATELFinancing SchemesFactoringtFactoringoAlcatel sells receivables under the commercial contract with the customers to banks t

19、o get the cash back in time while referring to the poor credit of the customers. tAdvantageoquick in getting cash backtDisadvantageoqualified customers oqualified receivablesFINANCIAL MANAGEMENT DEPT., ALCATELFinancing SchemesFactoring1. Commercial Contract3. Transfer Notification4. Receivables Purc

20、haseand Pay2. Factoring Application5. Customer Pay6. Lawsuit insteadCustomerX BankA L C T E LFINANCIAL MANAGEMENT DEPT., ALCATELFinancing Schemes-TrusttSeparate operation vs. Hybrid operationtAdvantageoBankruptcy isolationoNot real transferoNo recourse to the principal of the loantDisadvantageoGrey

21、area of legislationoNot mature local marketFINANCIAL MANAGEMENT DEPT., ALCATELFinancing Schemes-TrustCustomerX BankTrusteeA L C T E L1.Commercial Contract2.Entrust Agreement3.Loan Agreement4.Customer PayFINANCIAL MANAGEMENT DEPT., ALCATELFinancing Schemes-AR SecuritizationtSecuritization vs. Private

22、 placementtmajor concernsoTrue saleoBankruptcy IsolationoHard offer or best offeroPortfolio or notoTransferable beneficiary note or notFINANCIAL MANAGEMENT DEPT., ALCATELFinancing Schemes-SecuritizationCustomerSPVInvestorsA L C T E L4.Issue beneficiary note2.Securization Agreement5.Customer Pay3.Pay

23、 Alcatel1.Commercial Contract6.Pay principle&interestFINANCIAL MANAGEMENT DEPT., ALCATELFinancing SchemesDomestic Letter of CredittDomestic L/CoThe same as international L/C except the requirement of the documents from the local bankstDisadvantageorarely applied in domestic marketostrict requirement of the documents (VAT invoice)oonly be applied within the same bankFINANCIAL MANAGEMENT DEPT., ALCATELFinancing Schemes-Domestic Letter of Credit1. L/C application7. Document Checking3.Documents requirement5.