Working Capital Policy
Running Head: WORKING CAPITAL POLICY
Working Capital Policy
Mariano Santana
University of Phoenix
Table of Contents
Introduction. 3
Danaher's Working Capital. .. .3 Cash Balance Requirements..... ...3 Credit Policy .4 Supplier Negotiation Strategy ..4 Short-term Financing Strategy .5 Metrics.. . . .5
Ethical Implications .6
Conclusion ...6
References ..7
Working Capital Policy Danaher, Inc. is an industrial company that "designs, manufacturers and markets innovative products, services and technologies with strong brand names and significant market positions" (Danaher, 2007). The company's 2006 Form 10-K provides insightful information regarding the overall financial perspective and performance for the year. The main interest retrieved from the data was the working-capital management efforts, especially in the section of cash operations. This paper will assess and create a working capital policy for Danaher that addresses its cash management needs for the long term. It will also describe the weaknesses in its existing working capital.
Danaher's Working Capital Danaher manages both domestic and international operations within its multiple business segments. The following excerpt gives a vague description of the company's working capital: "Our businesses maintain sufficient levels of working capital to support customer requirements. Our sales and payment terms are generally similar to those of our competitors" (Danaher, 2007, p. 10). Although it does not go into any detail, the remainder of the 10-K paints a compelling picture of how well the company performed in its last fiscal year. Nonetheless, like the CFO of Qualcomm, William Keitel once said about his company's success with working
Working Capital Policy
Mariano Santana
University of Phoenix
Table of Contents
Introduction. 3
Danaher's Working Capital. .. .3 Cash Balance Requirements..... ...3 Credit Policy .4 Supplier Negotiation Strategy ..4 Short-term Financing Strategy .5 Metrics.. . . .5
Ethical Implications .6
Conclusion ...6
References ..7
Working Capital Policy Danaher, Inc. is an industrial company that "designs, manufacturers and markets innovative products, services and technologies with strong brand names and significant market positions" (Danaher, 2007). The company's 2006 Form 10-K provides insightful information regarding the overall financial perspective and performance for the year. The main interest retrieved from the data was the working-capital management efforts, especially in the section of cash operations. This paper will assess and create a working capital policy for Danaher that addresses its cash management needs for the long term. It will also describe the weaknesses in its existing working capital.
Danaher's Working Capital Danaher manages both domestic and international operations within its multiple business segments. The following excerpt gives a vague description of the company's working capital: "Our businesses maintain sufficient levels of working capital to support customer requirements. Our sales and payment terms are generally similar to those of our competitors" (Danaher, 2007, p. 10). Although it does not go into any detail, the remainder of the 10-K paints a compelling picture of how well the company performed in its last fiscal year. Nonetheless, like the CFO of Qualcomm, William Keitel once said about his company's success with working