Professional Documents
Culture Documents
ASSETS MANAGEMENT
Working Capital Management
Dual Objective:
1. Ensure Liquidity
2. Optimize Profitability
•Profitability measured by the quality of its products in the
market place and the ability of the enterprise to control
expenses.
Collect on Sell
Accounts Inventory
Sell Inventory Receivable for Credit
for Credit
Average time it
takes to pay its
suppliers
CASH
MANAGEMENT
Objective of Cash Management
1.Transactional Motive
2.Speculative Motive
3.Precautionary Motive
Economic Cycle
Prosperity
Recovery Recession
Depression
Business Life Cycle
Infancy
Stage
Decline or
Maturity Growth
Stage
Stage
Expansion
Stage
Objective of Current Assets
Management