Principles of Working Capital Management  

• Learning Objectives
• Current Assets vs. Fixed Assets
• Concepts of Working Capital

Operating Cycle  

• Gross Operating Cycle
• Inventory Conversion Period (ICP)
• Debtors Conversion Period (DCP)
• Creditors Payable Period (CPP)
• Net Operating Cycle (NOC)

Permanent Working Capital & Variable Working Capital  

• Permanent Working Capital
• Variable Working Capital
• Determinants of Working Capital
  • Nature of Business
  • Market and Demand Conditions
  • Technology and Manufacturing Policy
  • Credit Policy
  • Availability of Credit and Suppliers
  • Operating Efficiency

Issues in Working Capital Management  

• Issues in WCM
• Estimating Working Capital Needs
  • Current Asset Holding Period
  • Ratio of Sales
  • Ratio of Fixed Investment
• Policies for Financing Current Assets
  • Long-Term Financing
  • Short-Term Financing
  • Spontaneous Financing
• Financing Approach
  • Matching Approach
  • Conservative Approach
  • Aggressive Approach

Receivables Management  

• Objectives
• Introduction
• Credit Policy : Nature & Goals

Credit Policy  : Goals  

• Optimum Credit Policy
• Evaluation Investments in Account Receivables

Credit Policy

• Credit Policy Variables
• Credit Standards and Analysis
• Categories of Customers
  • Good Account
  • Bad Account
  • Marginal Account
• Credit Granting Decision

Inventory Management  

• Introduction
• Inventory Management : Objectives
• Benefits of Holding Inventory
• Inventory Management Techniques
  • A B C Classification
  • Economic Order Quantity Model (EOQ)
  • EOQ Assumptions
  • Limitations of EOQ Model

Cash Management  

• Introduction
• Motives for Holding Cash
  • Transaction Motive
  • Precautionary Motive
  • Speculative Motive
  • Compensating Motive
• Objectives of Cash Management

Factors Determining Cash Needs  

• Four Factors
  • Synchronization Of Cash Flows
  • Short Costs
  • Excess Cash Balance
  • Procurement and Management
  • Uncertainty
• Cash Management Models
• Introduction
  • Baumol Model
  • Miller - Orr Model
• Cash Management Strategies

Marketable Securities Working Capital Financing

• Introduction
• Trade Credit
• Bank Credit
• CP’s, CD’s