The paper introduces an internal information tool, the advanced cash conversion cycle (ACCC), for controlling the amount and cost of working capital, by refining and extending the concept of the weighted cash conversion cycle. The ACCC model has been developed with a real world value chain case...

One of the most important roles of a company’s management is to forecast the future economic conditions in which the company will develop its activity. Based on these forecasts and taking into account the economic, technical and competitive environments, the management establishes the...

The basic financial purpose of a firm is to maximize its value. An inventory management system should also contribute to realization of this basic aim. Many current asset management models currently found in financial management literature were constructed with the assumption of book profit...

To date, the Bierman-Hausman (Bierman, H., Jr., W. H. Hausman. 1970. The credit granting decision. Management Sci. 16 B519--B532.) model remains the most rigorous normative effort in credit granting. This note points out that the procedure suggested by Bierman and Hausman for considering the...

Working capital management is an essential element in short-term financing and cash flow. Previous studies have also discussed the impact of working capital management on the relative profitability of a company. In this paper, we study the effect of the management of working capital components...

Working capital management almost always determines the ability of a firm to earn profit. Efficiency with which a firm handles working capital ensures prosperity while neglect would spell danger for the very survival of the firm. The study focuses on the impact of working capital management on...

This is a course material (slides in pdf format) for Financial Analysis and Control already in SSRN. In these slides I present a detailed explanation of different tools commonly used in financial management and specifically Working Capital Management. We introduce some examples in the slides and...

A shorter cycle time of working capital (CCC) frees cash from operations. Companies emphasise the meaning of efficient supply chain operations, but also customers can impact the length of the CCC. Working capital management affects customer profitability through the interest costs. If the...

The study aims to explore the effects of liquidity management on profitability of Indian FMCG firms and also the relationship amongst them. Liquidity management is crucial for every firm to meet-up both short term and long term current obligations of business, including operating and financial...