Course: Financial Analysis for Business Decisions: Cash Flow Management

Since we have an understanding of the most common financial instruments, we will now briefly explore some of the emerging investment vehicles that exist in the market. Cryptocurrency Cryptocurrency is …

In the following section, we will discuss in more depth the pros and cons of owning stocks, from the point of an investor rather than the borrower. This will allow …

First, in order to value stocks, we must understand what intrinsic (or fundamental) value is. It is an important concept and is defined as the amount a rational investor would …

As we’ve stated before, firms will issue stock to raise capital for a variety of business decisions. It is important to note that a firm might also choose to issue …

Watch this video for an introduction to stocks and people or companies who are interested in stocks. There are actually different types of stocks that companies can issue – below …

Working capital measures liquidity. Liquidity is an organisation’s ability to transform assets into cash. Liquid assets can be cash or a resource that can be quickly turned into cash. Examples …

This section will focus on the types and categories of bonds that exist, with a specific focus on the Australian Stock Exchange (ASX). This may vary slightly by country, and …

Managers must be aware of not just short-term but also long-term financing options available to them. Depending on their unique situation, they should be able to opt for the one …

If you got paid for sales instantly, you would never have an AR problem and therefore any cash flow problems. However, this rarely happens in the real world. The key …

An ageing schedule is a way of finding out if customers are paying their bills within the credit terms outlined in the company’s credit terms. The ageing schedule is a …

Bad debts are customers (AR) that are unable to meet their commitment to pay for their service, product, or whatever widget they have received from you. There is no set …

Accounts receivable, or AR, is a crucial figure if you allow your customers credit to pay for your service / product after a period of time. Analysing your average AR …

Use the cash conversion cycle (CCC) to measure the amount of days it takes to convert inventory into cash. The CCC marks the time it takes to sell inventory and …

Watch the following video as it provides context and goes through an example of how you can calculate working capital using the formula: Current assets – current liabilities Watch: Working …