Explain the importance of the cash conversion cycle

Assignment Help Corporate Finance
Reference no: EM131714248

Assignment

Purpose of Assignment

The purpose of this assignment is to help students gain a better understanding of calculations of cash flow and strategies to increase it.

Assignment Steps

Select a multinational company from the following industries:

• Retail
• Pharmaceutical
• Computer Hardware
• Manufacturing
• Automotive

Review the selected company's most recent financial statements.

Calculate the following cash conversion cycle ratios based on the financial statements using Microsoft® Excel®:

• Average inventory
• Inventory turnover rate
• Average account receivable
• Account receivable turnover
• Average collection cycle
• Average Payment Cycle

Explain the importance of the cash conversion cycle, including:

• Discuss the purpose of the cash conversion cycle and its components.
• Analyze the results obtained in the cash conversion cycle equations.
• Propose strategies to increase the cash flows of the company under study.
• Calculations need to be included in the analysis/explanation paper.

Format your paper consistent with APA guidelines.

Reference no: EM131714248

Questions Cloud

Size of the electric force : 1. Two bowling balls, each with a positive charge of 2.5 x 10 ^-5 are located 23.0 cm apart. The size of the electric force between them is ___N.
A client has been admitted to the unit with chest pain : A client has been admitted to the unit with chest pain and a history peripheral artery disease and type 2 diabetes
Journalize the transactions explanations are not required : Aug 19 Issued 10,000 shares of $5.00 par common stock for cash of $12.00 per share. Journalize the transactions. Explanations are not required
What is the energy in joules of the photons : What is the energy in joules of the photons associated with this light?
Explain the importance of the cash conversion cycle : Explain the importance of the cash conversion cycle. Discuss the purpose of the cash conversion cycle and its components.
Discuss the projectile and gunshot trauma of the skeleton : You need an annotated bibliography done for my forensic anthropology class. It has to be 10 journal articles or book chapters.
What is the frequency of this uv light : Photons of a certain ultraviolet light have an energy of 6.49 10-19 J.
Discuss pathological ramifications of the condition : the gastrointestinal system and discuss the epidemiological characteristics and pathological ramifications of the condition
Record the transactions in smooth sound journal : Mar 3 Purchased a piano (inventory) for $50,000, signing a six-month, 8% note payable. Record the transactions in Smooth Sound's journal

Reviews

Write a Review

Corporate Finance Questions & Answers

  Impact of the global economic crisis on business environment

This paper reviews the article of ‘the impact of the global economic crisis on the business environment' that is written by Roman & Sargu (2011).

  Explain the short and the long-run effects on real output

Explain the short and the long-run effects on real output, price, and unemployment

  Examine the requirements for measuring assets

Examine the needs for measuring assets at fair value in accounting standards

  Financial analysis report driven by rigorous ratio analysis

Financial analysis report driven by rigorous ratio analysis

  Calculate the value of the merged company

Calculate the value of the merged company, the gains (losses) to each group of shareholders, NPV of the deal under different payment methods. Synergy remains the same regardless of payment method.

  Stock market project

Select five companies for the purpose of tracking the stock market, preparing research on the companies, and preparing company reports.

  Write paper on financial analysis and business analysis

Write paper on financial analysis and business analysis

  Intermediate finance

Presence of the taxes increase or decrease the value of the firm

  Average price-earnings ratio

What is the value per share of the company's stock

  Determine the financial consequences

Show by calculation the net present value for the three alternatives (no education, network design certification, mba). Also, according to NPV suggest which alternative you advise your friend to choose

  Prepare a spread sheet model

Prepare a spread sheet model for the client that determines NPV/IRR with and without tax.

  Principles and tools for financial decision-making

Principles and tools for financial decision-making. Analyse the concept of corporate capital structure and compute cost of capital.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd