Working Capital Management - Citigroup Case Study

In the daily operations of the skilled nursing center where I work, there are two kinds of capital, fixed capital and working capital. Fixed capital consists of the building, grounds and equipment and working capital is what is necessary to manage the day to day activities of the center. When I add together the totals for current assets and current liabilities in the balance sheet, a very important figure can be calculated, working capital. Effective management of working capital is essential to my center’s fundamental financial health and operational success. An indication that a facility is in the hands of a strong administrator; is one who has the ability to utilize working capital management to sustain a solid balance between

Working capital is the key to a successful business. It is like their blood flow and the manager’s job is to help keep it flowing. Under the Generally Accepted Accounting Principles working capital is simply the difference between a company’s Current Assets, which are cash, inventory, accounts receivable and prepaid items, and Current Liabilities, accounts payable and accrued expenses.

Eljelly (2004) elucidate, that” efficient liquidity management involves planning and controlling current assets and current liabilities in such a manner that eliminates the risk of inability to meet due short-term obligations and avoids excessive investment in these assets. The study found that the cash conversion cycle was of more importance as a measure of liquidity than the current ratio that affects profitability”.

In a typical corporation there are two divisions, Treasurer’s and Controllers offices that manage the finance function. The Treasurer’s Office is responsible for managing the firm’s cash and credit, its financial planning, and its capital expenditures. The

Among the tools required for every business to survive and thrive, the ability to maintain a regular self-examination holds an indispensable place. The size of the business in question is almost of no consequence, only the potential complexity of the self-examination changes. A prime tool for such self-examinations is the family of related financial reporting that has become nearly universal in western businesses: the income statement, the balance sheet, and the statement of cash flows. This trio of reports enables management and owners to carefully examine the holdings and liabilities of their business so they may make

Similarly, the working capital ratio is a metric that is utilized for the purpose of appraising the liquidity position of a commercial entity (Robinson). A review of the working capital of the two companies confirms that they had a positive working capital in 2014, but a negative one in 2015 (Yahoo.com). The outcome suggests that the liquidity position of the organization has deteriorated. Thus, the two commercial entities are likely to experience challenges with respect to meeting short-term obligations.

Parrino, R., Kidwell, D. S, & Bates, T. W. (2012: Concept Review Video: Working Capital Management

Madison Street Capital has maintained its commitment to integrity, leadership, and service. These tenants have led to a successful firm that is trusted by many in the industry for its corporate financial services, merger and acquisition mediation, and valuation services to both public and private companies. Madison Street Capital has developed a long track record of successful and satisfied clients with its ability to both raise capital and assist in transfers of ownership. Madison Street Capital has a unique view of emerging markets which leads to its ability to capitalize on untapped customer bases. This insight is what grants Madison Street Capital the ability to take its clients to new heights of success. Madison Street Capital has worked hard to offer multiple platforms to assist its clients. With this diverse array of services, Madison Street Capital has positioned both itself and its clients as leaders in the international marketplace. This steadfast dedication to professional service has garnered the trust of the most successful companies around the world. Its success is a testament to integrity and serves as a shining example to all investment banking firms looking to follow in its

Analysis and timing of cash and cash equivalents directly impacts the organization’s financial position. Cash flow projections should be a continual process, which helps to determine whether or not the organization has enough liquid assets to create cash in a crisis situation. “The key to any group is that cash flow be accurately recorded and that the report be scrutinized often to uncover trends and changed that might need immediate attention” (Matan & Hartnett,

First, with respect to the cash conversion cycle, Lawrence Sports largely draws is working capital from two sources. The first of these is its partnership with Mayo, the largest retailer in the world and buyer of 95% of all goods from Lawrence. The second of these is the Central Bank, which maintains the company's account balance at $50,000 through a system of automatic loans that are invoked any time the company's cash availability slips beneath this margin. Historically, Lawrence has employed an Aggressive approach to its capital management by relying on a wealth of sales and compensation from a single source. This is an approach which would depend on what the simulation terms as the 'aggressive' sales styling of Mayo Account Management Robert Dent as well as on the approach of vesting all of the company's revenue on only one source.

Because of the monthly bank reconciliation and sole purchasing of the supplies, the accountant is acting as a treasurer and

This assignment consists of a profitable business ran by a man name “George.” George is aware that we are in a MBA Managerial Finance class and he needs advice on his working capital practices. George would like the answers to the following:

DUKE UNIVERSITY Fuqua School of Business FINANCE 351 - CORPORATE FINANCE Hint Sheet: Congoleum Corporation Prof. Simon Gervais Fall 2011 – Term 2

From Exhibit 6, there is no doubt that Chase was the top bank in syndicated finance in the US and over the world. However, it recorded limited performance in Asian market though Chase had put numerous resources into its global group. At the same time, Chase was among Disney’s top relationship banks and Disney as well as its project in Hong Kong had a noticeable market signal.

·         CEO has decided to use the capital committed to Bernoulli to boost the ailing performance of other parts of the firm.