Working Capital Management Strategies for Improving Working Capital Management by Dorothy Rule‚ Director and Global Head of Liquidity and Investments‚ Citigroup Global Transaction Services n 2004‚ treasurers worldwide continue to strive to manage working capital more efficiently. They are under pressure to reduce Days Sales Outstanding‚ to measure Days Payable Outstanding‚ and to find alternatives for enhancing yield management due to record low interest rates. Other factors are impacting corporate
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Timing: Date Comments Planning Fieldwork Report Issuance (Local) Report Issuance (Worldwide) Audit Objectives Review the organization’s policies and procedures related to interest rate risk and Asset and Liability Management‚ including liquidity‚ derivatives‚ and swaps Determine if these policies and procedures are reviewed on a regular basis for effectiveness Assess the Board of Director’s and Asset and Liability Management Committee’s oversight of the Asset and Liability Management function
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2013http://www.brighthub.com/office/finance/articles/76452.aspx What are current assets? What are noncurrent assets? What differs between current and noncurrent assets? What is the order of liquidity? How does the order of liquidity apply to the balance sheet? Order of liquidity is the presentation of assets in the balance sheet in the order of the amount of time it would usually take to convert them into cash. Thus‚ cash is always presented first‚ followed by marketable securities
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Capital flows to Emerging Market Economies (Chairman: Rakesh Mohan)‚ Bank for International Settlements‚ Basel. • World Bank (2008)‚ Global Development Finance 2008: The Role of International Banking‚ World Bank Mohan‚ Rakesh (2006a)‚ “Coping with Liquidity management in India : A Practitioner’s View”‚ Reserve Bank of India Bulletin‚ April.
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risky Without financial intermediaries‚ households will find direct investments in corporate securities unattractive due to information/monitoring costs‚ liquidity cost and price risk. Thus flow was funds are less‚ little monitoring and risk of investments would increase. Specialness of financial institutions General areas (LIP TM) Liquidity services Information services Price- risk reduction services Transaction cost services Maturity intermediation services Institution- specific (McDIP)
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1. What are the pros and cons of banking regulations stipulated by the central bank? Comment on the statement that regulations imposed on banks should be based on a strategic regulatory framework so as to be disclosed‚ transparent‚ equitable and predictable. -Pros and cons of banking regulations stipulated by the central bank: Pros: Central bank is one of the organizations which is in charge of making and maintaining bank regulation. Regulation helps to protect the public against loss through
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inform the students that the firm’s stock price has recently dropped from $7 per share to $5.50 per share. Case objective: The objective of this case is to cover financial statement analysis and cash flow analysis‚ with a particular emphasis on liquidity and net working capital. Student Preparation time: Approximately 2 hours. Answers to questions: 1. Why has the stock price fallen despite the fact that the net income has increased? Although Signal has made a net profit that is higher than that of
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’signalling’ rates include the bank rate‚ the repo rate‚ the reverse repo rate‚ the cash reserve ratio (CRR) and the statutory liquidity ratio (SLR). RBI increases its key policy rates when there is greater volume of money in the economy. In other words‚ when too much money is chasing the same or lesser quantity of goods and services. Conversely‚ when there is a liquidity crunch or recession‚ RBI would lower its key policy rates to inject more money into the economic system. What is Repo Rate?
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analysis that are substantial in the implementation of HMO’s daily operation. Ratio analysis is an important technique‚ which is widely used for interpreting financial statements. In today’s health care environment‚ liquidity and activities are significant in the performance of HMO’s. Liquidity ratio is a measure of the company assets that pay into their short-term commitment. This measurement involves planning and controlling the current assets and
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Financial Economics: Term paper 1 Corporate Bond Market in India: A critical appraisal Introduction The corporate bond market involves all bonds that have credit risk‚ i.e.‚ bonds issued by all entities other than the central government. This includes not just the bonds issued by private Indian firms‚ but more significantly bonds issued by sub national agencies such as state government and municipalities‚ as well as the public sector unites or entities which
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