短期财务与计划方案分析课件

ChapterOutline27.1TracingCashandNetWorkingCapital27.2DefiningCashinTermsofOtherElements27.3TheOperatingCycleandtheCashCycle27.4SomeAspectsofShort-TermFinancialPolicy27.5CashBudgeting27.6TheShort-TermFinancialPlan27.7Summary&ConclusionsChapterOutline27.1TracingCaExecutiveSummaryWearesolidlyintothethirdgreatquestionofcorporatefinance.ExecutiveSummaryWearesolidlTheBalance-SheetModeloftheFirmCurrentAssetsFixedAssets1Tangible2IntangibleShareholders’EquityCurrentLiabilitiesLong-TermDebtWhatlong-terminvestmentsshouldthefirmengagein?TheCapitalBudgetingDecisionTheBalance-SheetModeloftheTheBalance-SheetModeloftheFirmHowcanthefirmraisethemoneyfortherequiredinvestments?TheCapitalStructureDecisionCurrentAssetsFixedAssets1Tangible2IntangibleShareholders’EquityCurrentLiabilitiesLong-TermDebtTheBalance-SheetModeloftheTheBalance-SheetModeloftheFirmHowmuchshort-termcashflowdoesacompanyneedtopayitsbills?TheNetWorkingCapitalInvestmentDecisionNetWorkingCapitalCurrentAssetsFixedAssets1Tangible2IntangibleShareholders’EquityCurrentLiabilitiesLong-TermDebtTheBalance-SheetModelofthe27.1TracingCashandNetWorkingCapitalCurrentAssetsarecashandotherassetsthatareexpectedtobeconvertedtocashwiththeyear.CashMarketablesecuritiesAccountsreceivableInventoryCurrentLiabilitiesareobligationsthatareexpectedtorequirecashpaymentwithintheyear.AccountspayableAccruedwagesTaxes27.1TracingCashandNetWork27.2DefiningCashinTermsofOtherElementsNetWorkingCapital+FixedAssets=Long-TermDebt+EquityNetWorkingCapital=CashOtherCurrentAssetsCurrentLiabilities+–Cash=Long-TermDebt+Equity–NetWorkingCapital(excludingcash)FixedAssets–27.2DefiningCashinTermsof27.2DefiningCashinTermsofOtherElementsAnincreaseinlong-termdebtandorequityleadstoanincreaseincash—asdoesadecreaseinfixedassetsoradecreaseinthenon-cashcomponentsofnetworkingcapital.TheSourcesandUsesofCashStatementfollowsfromthisreasoning.Cash=Long-TermDebt+Equity–NetWorkingCapital(excludingcash)FixedAssets–27.2DefiningCashinTermsof27.3TheOperatingCycleandtheCashCycleTimeAccountspayableperiodCashcycleOperatingcycleCashreceivedAccountsreceivableperiodInventoryperiodFinishedgoodssoldFirmreceivesinvoiceCashpaidformaterialsOrderPlacedStockArrivesRawmaterialpurchased27.3TheOperatingCycleandt27.3TheOperatingCycleandtheCashCycleInpractice,theinventoryperiod,theaccountsreceivableperiod,andtheaccountspayableperiodaremeasuredbydaysininventory,daysinreceivablesanddaysinpayables.

Cashcycle=Operatingcycle–Accountspayableperiod27.3TheOperatingCycleandt27.4SomeAspectsofShort-TermFinancialPolicyTherearetwoelementsofthepolicythatafirmadoptsforshort-termfinance.TheSizeoftheFirm’sInvestmentinCurrentAssetsUsuallymeasuredrelativetothefirm’sleveloftotaloperatingrevenues.FlexibleRestrictiveAlternativeFinancingPoliciesforCurrentAssetsUsuallymeasuredastheproportionofshort-termdebttolong-termdebt.FlexibleRestrictive27.4SomeAspectsofShort-TerTheSizeoftheInvestmentinCurrentAssetsAflexiblepolicyshort-termfinancepolicywouldmaintainahighratioofcurrentassetstosales.Keepinglargecashbalancesandinvestmentsinmarketablesecurities.Largeinvestmentsininventory.Liberalcreditterms.Arestrictiveshort-termfinancepolicywouldmaintainalowratioofcurrentassetstosales.Keepinglowcashbalances,noinvestmentinmarketablesecurities.Makingsmallinvestmentsininventory.Allowingnocreditsales(thusnoaccountsreceivable).TheSizeoftheInvestmentinCarryingCostsandShortageCosts$InvestmentinCurrentAssets($)ShortagecostsCarryingcostsTotalcostsofholdingcurrentassets.CA*MinimumpointCarryingCostsandShortageCoAppropriateFlexiblePolicy$InvestmentinCurrentAssets($)ShortagecostsCarryingcostsTotalcostsofholdingcurrentassets.CA*MinimumpointAppropriateFlexiblePolicy$InWhenaRestrictivePolicyisAppropriate$InvestmentinCurrentAssets($)ShortagecostsCarryingcostsTotalcostsofholdingcurrentassets.CA*MinimumpointWhenaRestrictivePolicyisAAlternativeFinancingPoliciesforCurrentAssetsAflexibleshort-termfinancepolicymeanslowproportionofshort-termdebtrelativetolong-termfinancing.Arestrictiveshort-termfinancepolicymeanshighproportionofshort-termdebtrelativetolong-termfinancing.AlternativeFinancingPoliciesAlternativeFinancingPoliciesforCurrentAssetsInanidealworld,short-termassetsarealwaysfinancedwithshort-termdebtandlong-termassetsarealwaysfinancedwithlong-termdebt.Inthisworld,networkingcapitalisalwayszero.AlternativeFinancingPoliciesFinancingPolicyforanIdealizedEconomyLong-termdebtpluscommonstock$Time0 1 2 3 4 5Currentassets=Short-termdebtFixedassets:agrowingfirmGrainelevatoroperatorsbuycropsafterharvest,storethem,andsellthemduringtheyear.Inventoryisfinancedwithshort-termdebt.Networkingcapitalisalwayszero.FinancingPolicyforanIdeali27.5CashBudgetingAcashbudgetisaprimarytoolofshort-tunfinancialplanning.Theideaissimple:Recordtheestimatesofcashreceiptsanddisbursements.CashReceiptsArisefromsales,butweneedtoestimatewhenweactuallycollect.CashOutflowPaymentsofAccountsPayableWages,Taxes,andotherExpensesCapitalExpendituresLong-TermFinancialPlanning27.5CashBudgetingAcashbudg27.5CashBudgetingThecashbalancetellsthemanagerwhatborrowingisrequiredorwhatlendingwillbepossibleintheshortrun.27.5CashBudgetingThecashba27.6TheShort-TermFinancialPlanThemostcommonwaytofinanceatemporarycashdeficittoarrangeashort-termloan.UnsecuredLoansLineofcreditdownatthebankSecuredLoansAccountsreceivablefinancingcaneeitherassignedorfactored.Inventoryloansuseinventoryascollateral.OtherSourcesBanker’sacceptancesCommercialpaper.27.6TheShort-TermFinancial27.7Summary&ConclusionsThischapterintroducesthemanagementofshort-termfinance.Weexaminetheshort-termusesandsourcesofcashastheyappearonthefirm’sfinancialstatements.Weseehowcurrentassetsandcurrentliabilitiesariseintheshort-termoperatingactivitiesandthecashcycleofthefirm.Fromanaccountingperspective,short-termfinanceinvolvesnetworkingcapital.27.7Summary&ConclusionsThis27.7Summary&ConclusionsManagingshort-termcashflowsinvolvestheminimizationofcosts.Thetwomajorcostsare:Carryingcosts—theinterestandrelatedcostsincurredbyoverinvestinginshort-termassetssuchascashShortagecosts—thecostofrunningoutofshort-termassets.Theobjectiveofmanagingshort-termfinanceandshort-termfinancialplanningistofindtheoptimaltradeoffbetweenthesetwocosts.27.7Summary&ConclusionsMana27.7Summary&ConclusionsInanidealeconomy,thefirmcouldperfectlypredictitsshort-termusesandsourcesofashandnetworkingcapitalcouldbekeptatzero.Intherealworld,networkingcapitalprovidesabufferthatletsthefirmmeetitsongoingobligations.Thefinancialmanagerseekstheoptimallevelofeachofthecurrentassets.27.7Summary&ConclusionsIna27.7Summary&ConclusionsThefinancialmanagercanusethecashbudgettoidentifyshort-termfinancialneeds.Thecashbudgettellsthemanagerwhatborrowingisrequiredorwhatlendingwillbepossibleintheshortrun.27.7Summary&ConclusionsTheChapterOutline27.1TracingCashandNetWorkingCapital27.2DefiningCashinTermsofOtherElements27.3TheOperatingCycleandtheCashCycle27.4SomeAspectsofShort-TermFinancialPolicy27.5CashBudgeting27.6TheShort-TermFinancialPlan27.7Summary&ConclusionsChapterOutline27.1TracingCaExecutiveSummaryWearesolidlyintothethirdgreatquestionofcorporatefinance.ExecutiveSummaryWearesolidlTheBalance-SheetModeloftheFirmCurrentAssetsFixedAssets1Tangible2IntangibleShareholders’EquityCurrentLiabilitiesLong-TermDebtWhatlong-terminvestmentsshouldthefirmengagein?TheCapitalBudgetingDecisionTheBalance-SheetModeloftheTheBalance-SheetModeloftheFirmHowcanthefirmraisethemoneyfortherequiredinvestments?TheCapitalStructureDecisionCurrentAssetsFixedAssets1Tangible2IntangibleShareholders’EquityCurrentLiabilitiesLong-TermDebtTheBalance-SheetModeloftheTheBalance-SheetModeloftheFirmHowmuchshort-termcashflowdoesacompanyneedtopayitsbills?TheNetWorkingCapitalInvestmentDecisionNetWorkingCapitalCurrentAssetsFixedAssets1Tangible2IntangibleShareholders’EquityCurrentLiabilitiesLong-TermDebtTheBalance-SheetModelofthe27.1TracingCashandNetWorkingCapitalCurrentAssetsarecashandotherassetsthatareexpectedtobeconvertedtocashwiththeyear.CashMarketablesecuritiesAccountsreceivableInventoryCurrentLiabilitiesareobligationsthatareexpectedtorequirecashpaymentwithintheyear.AccountspayableAccruedwagesTaxes27.1TracingCashandNetWork27.2DefiningCashinTermsofOtherElementsNetWorkingCapital+FixedAssets=Long-TermDebt+EquityNetWorkingCapital=CashOtherCurrentAssetsCurrentLiabilities+–Cash=Long-TermDebt+Equity–NetWorkingCapital(excludingcash)FixedAssets–27.2DefiningCashinTermsof27.2DefiningCashinTermsofOtherElementsAnincreaseinlong-termdebtandorequityleadstoanincreaseincash—asdoesadecreaseinfixedassetsoradecreaseinthenon-cashcomponentsofnetworkingcapital.TheSourcesandUsesofCashStatementfollowsfromthisreasoning.Cash=Long-TermDebt+Equity–NetWorkingCapital(excludingcash)FixedAssets–27.2DefiningCashinTermsof27.3TheOperatingCycleandtheCashCycleTimeAccountspayableperiodCashcycleOperatingcycleCashreceivedAccountsreceivableperiodInventoryperiodFinishedgoodssoldFirmreceivesinvoiceCashpaidformaterialsOrderPlacedStockArrivesRawmaterialpurchased27.3TheOperatingCycleandt27.3TheOperatingCycleandtheCashCycleInpractice,theinventoryperiod,theaccountsreceivableperiod,andtheaccountspayableperiodaremeasuredbydaysininventory,daysinreceivablesanddaysinpayables.

Cashcycle=Operatingcycle–Accountspayableperiod27.3TheOperatingCycleandt27.4SomeAspectsofShort-TermFinancialPolicyTherearetwoelementsofthepolicythatafirmadoptsforshort-termfinance.TheSizeoftheFirm’sInvestmentinCurrentAssetsUsuallymeasuredrelativetothefirm’sleveloftotaloperatingrevenues.FlexibleRestrictiveAlternativeFinancingPoliciesforCurrentAssetsUsuallymeasuredastheproportionofshort-termdebttolong-termdebt.FlexibleRestrictive27.4SomeAspectsofShort-TerTheSizeoftheInvestmentinCurrentAssetsAflexiblepolicyshort-termfinancepolicywouldmaintainahighratioofcurrentassetstosales.Keepinglargecashbalancesandinvestmentsinmarketablesecurities.Largeinvestmentsininventory.Liberalcreditterms.Arestrictiveshort-termfinancepolicywouldmaintainalowratioofcurrentassetstosales.Keepinglowcashbalances,noinvestmentinmarketablesecurities.Makingsmallinvestmentsininventory.Allowingnocreditsales(thusnoaccountsreceivable).TheSizeoftheInvestmentinCarryingCostsandShortageCosts$InvestmentinCurrentAssets($)ShortagecostsCarryingcostsTotalcostsofholdingcurrentassets.CA*MinimumpointCarryingCostsandShortageCoAppropriateFlexiblePolicy$InvestmentinCurrentAssets($)ShortagecostsCarryingcostsTotalcostsofholdingcurrentassets.CA*MinimumpointAppropriateFlexiblePolicy$InWhenaRestrictivePolicyisAppropriate$InvestmentinCurrentAssets($)ShortagecostsCarryingcostsTotalcostsofholdingcurrentassets.CA*MinimumpointWhenaRestrictivePolicyisAAlternativeFinancingPoliciesforCurrentAssetsAflexibleshort-termfinancepolicymeanslowproportionofshort-termdebtrelativetolong-termfinancing.Arestrictiveshort-termfinancepolicymeanshighproportionofshort-termdebtrelativetolong-termfinancing.AlternativeFinancingPoliciesAlternativeFinancingPoliciesforCurrentAssetsInanidealworld,short-termassetsarealwaysfinancedwithshort-termdebtandlong-termassetsarealwaysfinancedwithlong-termdebt.Inthisworld,networkingcapitalisalwayszero.AlternativeFinancingPoliciesFinancingPolicyforanIdealizedEconomyLong-termdebtpluscommonstock$Time0 1 2 3 4 5Currentassets=Short-termdebtFixedassets:agrowingfirmGrainelevatoroperatorsbuycropsafterharvest,storethem,andsellthemduringtheyear.Inventoryisfinancedwithshort-termdebt.Networkingcapitalisalwayszero.FinancingPolicyforanIdeali27.5CashBudgetingAcashbudgetisaprimarytoolofshort-tunfinancialplanning.Theideaissimple:Recordtheestimatesofcashreceiptsanddisbursements.CashReceiptsArisefromsales,butweneedtoestimatewhenweactuallycollect.CashOutflowPaymentsofAccountsPayableWages,Taxes,andotherExpensesCapitalExpendituresLong-TermFinancialPlanning27.5CashBudgetingAcashbudg27.5CashBudgetingThecashbalancetellsthemanagerwhatborrowingisrequiredorwhatlendingwillbepossibleintheshortrun.27.5CashBudgetingThecashba27.6TheShort-TermFinancialPlanThemostcommonwaytofinanceatemporarycashdeficittoarrangeashort-termloan.UnsecuredLoansLineofcreditdownatthebankSecuredLoansAccountsreceivablefinancingcaneeitherassignedorfactored.Inventoryloansuseinventoryascollateral.OtherSourcesBanker’sacc