法国新闻社团的经营管理

AFPCorporateTreasuryManagementProgram第一页，共九十页。Chapter1:TheRoleofTreasuryManagement

OutlineTrendsinTreasuryManagementTheCorporateFinancialObjectiveTheFinanceFunctionFinancialDecisionsFinancialOrganizationTreasuryManagementObjectivesandtheCashFlowTimelineTheOperatingCycleandtheCashFlowTimelineCashFlowsCashFlowTimelineandFloatTheFutureofTreasuryManagement©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-2第二页，共九十页。CorporateFinancialDecisionsCapitalStructureDecisionsInvestmentDecisionsFinancingDecisionsDividendDecisions©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-3第三页，共九十页。OperatingCycle1.

AcquireMaterials

orResources2.

ConvertMaterialstoGoods

ConvertResourcestoServices3.

SellGoods

orServices4.

CollectPayment

forGoodsorServices©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-4第四页，共九十页。DiscussionQuestionWhataresevenmajorobjectivesoftreasurymanagement?Answer:MaintainingliquidityOptimizingcashresourcesEstablishingandmaintainingaccesstoshort-termfinancingMaintainingaccesstomedium-andlong-termfinancing(capitalbudgeting)MaintainingshareholderrelationsManagingriskCoordinatingfinancialfunctionsandsharingfinancialinformation©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-5第五页，共九十页。GeneralCashFlowTimelinePurchaseof

ResourcesPaymentfor

ResourcesSaleofGoods

orServicesCollectionof

SalesReceipts©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-6第六页，共九十页。ACompany’sCashFlowTimelineSupplier

Order

PlacedCustomer

Order

ReceivedCustomer

Invoice

SentCustomer

Receives

InvoicePayment

SentReceives

PaymentCheck

DepositedFunds

DebitedCustomer

Sends

PaymentCustomer

Payment

ReceivedCheck

DepositedFunds

AvailableSupplier

Invoice

ReceivedOrderEntryOrder

ShippingInvoicePrepMailDelayCreditTerms

&Payment

ProcessingInvoice

Processing&

CreditTermsMailDelayAvailability

DelayMailDelayProcessing

DelayClearing

DelayProcessing

DelayCollectionFloatA/RInvoicingFloatDisbursementFloatA/PPaymentFloatAcquire&ConvertSell&Collect©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-7第七页，共九十页。Chapter2:TreasuryOrganizationalStructureOutlineTreasuryObjectivesandPoliciesTreasuryPoliciesFinancialOrganizationFinancialOrganizationalStructureKeyRolesandResponsibilitiesDailyCashManagementTreasuryManagementOrganizationTreasuryLinkagesandInterfacesEnterpriseTreasuryManagement©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-8第八页，共九十页。TreasuryPoliciesAreasfordevelopingtreasurypolicy:EstablishingtreasuryobjectivesDeterminingfundingrequirementsEstablishinganinvestmentpolicyMeasuringandmanagingfinancialexposuresEvaluatingtreasuryperformancePoliciesmustoutlinerolesandresponsibilitiesfor:CalculatingadailycashpositionInitiatingandapprovinginternalandexternaltransfersDeterminingmethodsofshort-termfundingEstablishingfinancialreportingmethods,formatsandtimeframesSelectingandmanaging3rd-partyvendorandbankingrelationships©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-9第九页，共九十页。TypicalOrganizationoftheFinancialFunction—TreasurerExternalfinancingBorrowingLeasingInvestorrelationsCashmanagementCollection/ concentrationDisbursementsShort-terminvestingFinancialinstitutionadministrationRiskmanagementInterestrateriskmanagementInsuranceForeignexchangeriskmanagementEmployeebenefitfundmanagement©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-10第十页，共九十页。TypicalOrganizationoftheFinancialFunction—ControllerAccountingFinancialreportingInternalaccounting/ auditingTaxreportsandfilingPayablesAccountspayablePayrollBudgetandfinancialplanningCapitalbudgetingFinancialplanningManagementinformationsystemsCreditandaccountsreceivableExternalauditorrelations©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-11第十一页，共九十页。DailyCashManagementDailyfundsmanagementPreparecashpositionworksheetMonitorcashbalancesMobilizefundsResearchandreconcileexceptionitemsCoordinatefinancefunctionswithA/R,A/PandaccountingBankingsystemadministrationLiquiditymanagementForecastingSystemsdesign,implementationandevaluationFinancialriskmanagement©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-12第十二页，共九十页。TreasuryLinkages&InterfacesTreasury$A/RRisk

Mgt.Investment

BorrowingPension

Mgt.PurchasingA/PGeneral

LedgerInternal

AuditTreasury$BanksRegulatory

AgenciesSuppliers

CustomersExternal

Investment

Mgrs.Financial

MarketsA/PIndustry

Trade

GroupsExternal

AuditorsIntracorporateIntegrationIntercorporateIntegration©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-13第十三页，共九十页。Chapter3:FinancialEnvironmentOutlineFinancialMarketsFinancialInstitutions:FunctionsandServicesRegulatoryAgenciesFederalLegislationLegislationGoverning:RegulationandSupervisionTypesofFinancialServicesOfferedGeographicBoundariesConsumerProtectionFederalReserveRegulationsUniformCommercialCode(UCC)©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-14第十四页，共九十页。SecurityandExchangesMarketsNYSEAMEXNASDNASDAQ(nationalover-the-counterexchange)RegionalexchangesContinuousmarketwithfrequentfasttradingreducingpricevolatilityPricessubjecttochangingsupplyanddemandCompaniesraisecapitalRegulatedenvironmentPrimarymarkets:debtandequityofferedforfirsttimetoinvestorsSecondarymarkets:previouslyissueddebtandequityaretradedbybrokersandbankers©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-15第十五页，共九十页。DepositAccountsCheckingaccountInterestbearingforindividuals,soleproprietorships,governmententitiesandnonprofitsNotinterestbearingfor“subchapterS”and“C”corporationsPurposesforholdingbalances:TransactionbalancesCompensatingbalancesCorrespondentbalancesMustbeheldforspecifiedperiodCDs(under$100K)JumboCDs(over$100K)FullynegotiableCDs($1mil.blocks)SavingsaccountsMMDAsNOWaccountsDemanddepositaccounts(DDAs)Timedepositaccounts(TDAs)©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-16第十六页，共九十页。CommercialBanks’ProductsandServicesDepositaccountsCreditservicesInvestmentbankingservicesPaymentandcollectionservicesTradeservicesForeignexchange(FX)servicesAgentorfiduciaryservicesRiskmanagementservicesConsultingservicesBroker/dealerservicesInsurancecompanyaffiliation©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-17第十七页，共九十页。InvestmentBanksUnderwritingDistributionAdvising©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-18第十八页，共九十页。TheFederalReserveSystem

(theFed)Organization:BoardofGovernorsFederalOpenMarketCommittee(FOMC)12banksand25branchesoftheFederalReserveRoles:SupervisionandregulationMonetarypolicyBankingserviceswholesalerFiscalagencyoftheU.S.TreasuryConsumerprotection©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-19第十九页，共九十页。OfficeoftheComptrolleroftheCurrency(OCC)RegulatesthenationalbankingsystemAdministersnationally-charteredbanksOverseestheexecutionoflawsrelatingtonationalbanksPromulgatesrulesandregulationsgoverningtheoperationsofnationalbanksSupervisesanationwidestaffofbankexaminersApproves/deniesnationalbankcharters,branches,capital&otherbankingstructurechangesExaminesnationalbanksforasset(loan)quality,capitaladequacy,andkeyregulations©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-20第二十页，共九十页。FederalDepositInsuranceCorporation(FDIC)Description:AnindependentagencyofthefederalgovernmentPrimaryroleistoprotectdepositorsfromlossescausedbybankinsolvencyResponsibilities:DepositinsuranceSupervisionActingasatrusteeineventofbankfailures©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-21第二十一页，共九十页。OfficeofThriftSupervision(OTS)Primaryregulatorofallfederalandmanystate-charteredthriftsServesastheprimaryregulatorofallfederalandstate-charteredsavingsinstitutionsbelongingtoSavingsAssociationInsuranceFund(SAIF)IssuesfederalchartersforS&LassociationsandsavingsbanksAdoptsandenforcesregulationstoensurethatinstitutionsoperateinasafeandsoundmanner©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-22第二十二页，共九十页。TheSecuritiesandExchangeCommission(SEC)RegisterspublicofferingsofdebtandequitysecuritiesbybanksorbankholdingcompaniesandcorporationsSetsfinancialdisclosurestandardsforcorporationsthatsellsecuritiestothepublicRequiresfilingofquarterlyandannualfinancialstatementsbycompanieswithpubliclyownedsecuritiesRegulatesmutualfundsandinvestmentadvisorsMonitoringinsidertrading©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-23第二十三页，共九十页。Garn-St.GermainDepositoryInstitutionsAct(1982)Extendedlegallendinglimitofbanksto15%ofcapitalandsurplus(unsecuredloans)and25%(securedloans)FDICcanarrangemergersofbanksacrossstatelineswhenpartnerscan’tbefoundAllowedbankstointroduceMMDAstocompetewithmoneymarketmutualfundsThriftinstitutionsallowedtoengageinwiderangeofinvestmentandlending,contributingtoS&Lcrisisof80sand90s©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-24第二十四页，共九十页。Sarbanes-OxleyAct(2002)ImprovedisclosureandfinancialreportingSECrulechangesrequirecompaniestoDisclosecodeofethicsforseniormanagement(andanywaivers)IndicateifauditcommitteehasafinancialexpertAuditcommitteesmustpre-approveauditor’sauditandnon-auditservices;bebriefedoncompany’saccounting(includingpreferablealternatives)RegulationGMustreconcilepro-formafinancialinformationtofinancialstatementsIssueearningsreleasesonform8-KMustincludematerialoff-balancesheetarrangementsinMD&A©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-25第二十五页，共九十页。Glass-SteagallActProhibitedcommercialbanksfromsecuritiesunderwritingexceptforgovernmentissuesProhibitedsecuritiesfirmsfromengaginginbank-likeactivities(e.g.,depositgathering)RequiredtheFedtoestablishinterestrateceilingsonalltypesofaccounts;prohibitedthepaymentofinterestondemandaccountsCreatedtheFDICtoguaranteedepositsup toastipulatedmaximumamount©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-26第二十六页，共九十页。Gramm-Leach-BlileyAct(1999)Eliminatedmanybarriersamongbanking,insuranceandsecuritiesbusinessesPermittedthecreationoffinancialholdingcompanies(FHCs)EstablishedtheFedastheprimaryregulatorofFHCsAllowedforeasierentrybyforeignbanksPlacedCRAratingstipulationsonmergersofbankholdingcompanieswithinsuranceorsecuritiesfirmsRequiredfinancialinstitutionstoestablishandregularlydiscloseprivacypolicies;prohibitedcreditcardandaccountnumbersfrombeingsharedwiththird-partymarketers©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-27第二十七页，共九十页。DepositoryInstitutionsDeregulationandMonetaryControlAct(1980)Requiredalldeposit-takinginstitutionstomaintainreservesattheFedMadeFedservicesavailabletoalldeposit-takinginstitutionsMandatedFedtoreduce/pricepaymentsystemfloatandpricepreviouslyfreeservicesPhasedoutRegulationQinterestrateceilings(exceptsubchapterSandCcorps.)PermittedbankstoofferNOWaccounts©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-28第二十八页，共九十页。CheckClearingforthe21stCenturyAct(2003)(Check21)FacilitateschecktruncationFostercheck-paymentinnovationwithoutmandatingreceiptofelectronicchecksImprovepaymentsystemoverallCreatesIRDor“substitutecheck”thatislegalequivalentoforiginalcheck(nolegalequivalenceforcheckimages)MICR-encodedpaperreproductionwithimageoffront/backConformstoindustrystandards©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-29第二十九页，共九十页。CommunityReinvestmentAct

(1977,1995)ImplementedbyRegulationBBandrevisedin1995Encouragesdepositoryinstitutionstomeetcreditneedsofcommunityinwhichtheyoperate,includinglow-andmoderate-incomeneighborhoodsCRAexaminationsareconductedbyallfederalagencieswhosupervisedepositoryinstitutions©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-30第三十页，共九十页。Article3—NegotiableInstrumentsAccordandsatisfaction:Stipulateswhenacheckcouldconstituteapaymentmadeinfull(accordandsatisfaction)Revisedtopermitavoidanceofinadvertentaccordandsatisfaction(ifthepayeediscoversanerrorwithin90days)Unauthorizedsignatures:Stipulatesthatabankcanchargeacustomer’saccountonlyforchecksthatareproperlypayableStipulateswhenacompanymaybeheldliableforsituationsrelatedtocheckissuance©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-31第三十一页，共九十页。Chapter4:FinancialAccountingOutlineAccountingConceptsandStandardsGAAPCashvs.AccrualAccountingFinancialStatementsAccountingforNon-businessEntitiesFinancialStatementAnalysis©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-32第三十二页，共九十页。GenerallyAcceptedAccountingPrinciples(GAAP)FourbasicprinciplesunderlyingGAAPHistoricalcostFulldisclosureRevenuerecognitionMatching©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-33第三十三页，共九十页。Cashvs.AccrualAccountingCashaccounting:RecordscashasitisreceivedRecordsexpensesastheyarepaidDirectlyrelatesallentriestoacashinfloworoutflowAccrualaccounting:RecognizesrevenuesastheyareearnedRecognizesexpenseswhentheassociatedrevenueisrecognizedMakesentriesregardlessofwhentherelatedcashflowoccursEarningsmanagement:managerscanintentionallydistortestimatesormakejudgmentsthatinfluencethelevelofreportedincome©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-34第三十四页，共九十页。FinancialAccountingStandards(FAS)Accountingforcash,cashequivalentsandoverdraftsAccountingforshort-terminvestments(FAS115)TradingsecuritiesHeld-to-maturitysecuritiesAvailableforsale(AFS)securitiesAccountingforderivativeinstrumentsandhedgingactivities(FAS133&138)ClassificationofdebtAccountingforgoodwill(FAS142)©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-35第三十五页，共九十页。AuditorOpinionsUnqualifiedUnqualifiedwithexplanatoryparagraphormodifiedunqualifiedQualifiedAdverseDisclaimed©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-36第三十六页，共九十页。SampleBalanceSheet“Snapshot”AssetsCurrentassetsFixedassetsDepreciablefixedassetsIntangibleassetsLiabilitiesCurrentliabilitiesLong-termliabilitiesEquityAssets=Liabilities+ShareholderEquity©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-37第三十七页，共九十页。SampleYear-EndIncomeStatementTheincomestatement,orP&L,isarecordofrevenuesandexpensesshowingthenetchangeinshareholderequityfromoperationsoveraspecifiedperiod.©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-38第三十八页，共九十页。SampleStatementofRetainedEarningsThestatementofretainedearningsshowshownetincomefortheperiodwasused.©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-39第三十九页，共九十页。SampleStatementofCashFlowsShowssourcesandusesofcashSectionsOperatingInvestingFinancingCashfromoperationscalculatedbyaddingbacknon-cashcharges(e.g.,depreciation)Cash,notearnings,repaysdebt©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-40第四十页，共九十页。FinancialStatementAnalysisSuppliersdeterminewhethertomakesalesoncreditTradingpartnersassessthefinancialabilityofacounterpartytomeetcontractualobligationsLendersdeterminewhethertoextendormaintaincreditRatingagenciesassesscreditriskofissuesInvestorsmakedecisionsaboutpurchasingandsellingcorporatedebtandequity©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-41第四十一页，共九十页。Common-SizeRatiosCommon-sizefinancialstatementsCommon-sizeincomestatementexpresseseverylineitemasapercentageofrevenuesCommon-sizeprofitabilitypercentagesaremarginsOneexampleofacommon-sizeratioisGrossProfitMargin©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-42第四十二页，共九十页。FinancialStatementAnalysisRatiosLiquidityorworkingcapitalratiosDebtmanagementratiosEfficiencyratiosPerformanceratios©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-43第四十三页，共九十页。LiquidityorWorkingCapital:CurrentRatioMeasuresthedegreetowhichcurrentobligationsarecoveredbycurrentassets

©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-44第四十四页，共九十页。LiquidityorWorkingCapital:

QuickRatioMeasuresthedegreetowhichacompany’scurrentliabilitiesarecoveredbyitsmostliquidcurrentassets©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-45第四十五页，共九十页。LiquidityorWorkingCapital:

CashFlowtoTotalDebtRatioMeasuresabilitytorepaydebt(arelativelylowratioindicatesaninabilitytorepaydebt)andcanpredictfinancialfailure©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-46第四十六页，共九十页。LiquidityorWorkingCapital:

CashTurnoverRatioIfacompanyhasacashconversioncycleof94.9days,howmanycashconversioncyclesdoesthecompanygothroughinayear(cashturnover)?©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-47第四十七页，共九十页。DebtManagement:

TimesInterestEarned(TIE)RatioMeasureshowmanytimesacompany’sEBITexceeditsinterestobligations©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-48第四十八页，共九十页。DebtManagement:

Long-TermDebttoCapitalMeasureswhatpercentageofacompany’scapitalizationisprovidedbylong-termdebt©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-49第四十九页，共九十页。DebtManagement:

DebttoTangibleNetWorthMeasuresacompany’sdebtasapercentageofitstangiblenetworth©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-50第五十页，共九十页。DebtManagement:

TotalLiabilitiestoTotalAssetsMeasuresthepercentageofallliabilitiesrelativetothetotalassetbaseofacompany©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-51第五十一页，共九十页。PerformanceandEfficiency:

ReturnonCommonEquityMeasuresearningsavailabletocommonshareholders(netincomelessanypreferredstockdividendsoramortization)expressedasapercentageofcommonequity©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-52第五十二页，共九十页。PerformanceandEfficiency:

ReturnonSalesMeasuresnetincomeasapercentageofsales©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-53第五十三页，共九十页。PerformanceandEfficiency:

ReturnonTotalAssetsMeasuresnetincomeasapercentageoftotalassets©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-54第五十四页，共九十页。PerformanceandEfficiency:

TotalAssetTurnoverMeasureshowmanytimesthestockofassetsisturnedoverbytheflowofrevenue©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-55第五十五页，共九十页。PerformanceandEfficiency:

FixedAssetTurnoverMeasureshowmanytimesthestockoffixedassetsisturnedoverbytheflowofrevenue©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-56第五十六页，共九十页。PerformanceandEfficiency:

CashConversionEfficiencyMeasurestheefficiencywithwhichacompanyconvertssalesintocash

©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-57第五十七页，共九十页。PerformanceandEfficiency:WorkingCapitalTurnoverMeasureshowmanytimesthestockofworkingcapitalassetsisturnedoverbytheflowofrevenue©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-58第五十八页，共九十页。UseofFinancialRatiosandPerformanceMeasuresAdvantagesEasilycomputedWidelyusedInformationeasilyobtainedAllowassessmentofhistoricalperformanceAllowforcomparisonbetweencompaniesDisadvantagesExpressstatic,notdynamic,relationshipsOftenmissvariabilityofcashflowsandarenotnecessarilyindicativeoffutureperformanceSummarizeaccountinginformationanddonotreflecteconomicvalueCannotreflectqualitativevalue(managerialtalent,intangibles)Useofdifferentaccountingmethodsor“windowdressing”candistortcalculations©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-59第五十九页，共九十页。Chapter5:FinancialPlanningandAnalysisOutlineBasicFinancialConceptsDecisionEvaluationDevelopingaFinancialPlan(Budgeting)PerformanceMeasurement©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-60第六十页，共九十页。TimeValueofMoneyThevalueofcashflowisdeterminedbythe:AmountofthecashflowsAppropriateinterestrateNumberoftimeperiodsinvolved©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-61第六十一页，共九十页。FutureValueWhatisthefuturevalueof$20,000ifitcanbeinvestedforfouryears,compoundedannually,atarateof3.95%?©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-62第六十二页，共九十页。PresentValueWhatisthepresentvalueof$23,352tobereceivedafterfouryears,discountedatarateof3.95%annually?Where:Ct=Cashflowattimeti=Periodicinterestraten=Numberofperiods©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-63第六十三页，共九十页。WeightedAverageCostofCapital(WACC)Note:Thedebtisadjustedbytheamountofthetaxratebecauseinterestisatax-deductibleexpense.Theafter-taxcostofdebtiscalculatedbymultiplyingthecostofdebttimes1minusthemarginaltaxrate.Costofcapitalcanbemeasuredbythecombinedcostofequityandcostofdebt.WhatistheWACCofacompanywith:Capitalstructureof45%debtto55%equityMarginaltaxrateof33%Costofdebtof11.5%Costofequityof15%©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-64第六十四页，共九十页。BreakevenAnalysisBreakevenpoint:levelofactivityforanoperationatwhichcostsexactlyequalbenefits©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-65第六十五页，共九十页。NetPresentValue(NPV)Where:Ct=Cashflowattimet;i=Periodicinterestrate(10%inthisexample);n=NumberofperiodsEvaluatesthepresentvalue(PV)ofallinflowsandoutflowsofaprojectusingthemarginalcostofcapitalasadiscountrate©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-66第六十六页，共九十页。InternalRateofReturn(IRR)Discountrate(i)atwhichthenetpresentvalue(NPV)equalszero.IRRreflectstheexpectedprofitontheexpenseasanannualrateWhere:Ct=Cashflowattimet;n=Numberofperiods©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-67第六十七页，共九十页。NetPresentValue(NPV)versusProfitabilityIndex(PI)PIputsindextermsontheamountfoundinNPV(i.e.,NPVisadiscreteamount;PIisaratiothatcanbeusedaspartofacommon-sizecomparison,itisunitsofinflowpresentvalueperunitofoutflowpresentvalue)©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-68第六十八页，共九十页。PerformanceMeasurementReturnoninvestment(ROI)ROIoverapartialperiodmaybemisleadingROIdoesnotincludechargeforcostofcapitalPositiveNPVprojectcanberejectedifitlowersoverallROIResidualIncomeAssignschargeforinvestedcapitalRIisa$amountandanyprofitableprojectafterdeductingcostofcapitalwillincreaseRI©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-69第六十九页，共九十页。EconomicValueAdded(EVA)Considersafter-taxoperatingprofitminusanappropriatechargefortheopportunitycostofallcapitalParentcompanyactsasabankfordivisions/unitindecidingwhogetsfundsParentusesEVAtodeterminedifferencebetweenaunit’snetoperatingprofitandachargeforcapital©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-70第七十页，共九十页。EVAEconomicvalueadded(EVA)isameasureoftheincrementalvaluethatacompany’sinvestmentsadd.WhatistheEVAofacompanywith:Totalcapitalof$11,400,000(aproductoflong-termdebtplustotalequity).Marginaltaxrateof34%.Weightedaveragecostofcapital(WACC)of11.72%.Operatingprofitof$1,980,000.©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-71第七十一页，共九十页。Chapter6:PhilosophyofWorkingCapitalOutlineOverviewofWorkingCapital(WC)ManagementWCManagementInvestingandFinancingStrategiesBasicsofShort-TermCreditCostsandRisksofAlternativeDebtMaturitiesFinancingStrategiesofMultidivisionalandMultinationalCompaniesCashdiscountcalculations©2004AssociationforFinancialProfessionals.Allrightsreserved. Review1-72第七十二页，共九十页。CashFlowCycleofaBusinessPurchaseofMaterialsPaymentforMaterialsSaleofProductCollectA/RDays’InventoryCashConversionCycleDays’ReceivablesDa