İşletme sermayesi yönetimi

Abstract

The management of working capital is concerned with two distinct but interwoven sets of activities: short term and long term financial operations. The former poses the problem of managing the individual current asset balances which make up the gross working capital position. Long term working capital management is concerned with providing and funding the volume of net working capital required by the company's current and future activities. The fundamental problem posed in the management of net and gross working capital can be illustrated by examining the effects on a company of an increase in sales. To fill new orders extra units must be produced. Extra production requires additional raw materials, labour and overhead expenses. Even after the sale is effected an interval of time will elapse before payment is received. Throughout the manufacturing, selling and delivery period the company's activities have to be financed. Though the effects of this financing will eventually be reflected the current and quick ratios, it is the pattern and timing of the expenditures and receipts that generates the company's current liqudity and solvency. An obvious problem concerning the management of a company's net working capital is the impact of inflation on the value of these assets. In times of high rates of inflation the money values of stocks and debtors can rise very rapidly. The value of trade creditors will also rise, but if the company is engaged in manufacturing, the impact of inflation is greater on the asset side of the balance sheet. As a result, incremental long term funds have to be found to finance this inflationary addition to the value of net working capital. To the extent that the company's long term funds are partly represented by long term debt, the exposure of these net assets to erosion by inflation is lessened. Incremental debt brings incremental financial risk and to achieve an acceptable balance this risk has to be weighed against the certain erosion of value caused by inflation. In the sixth and last section, a firm which is one of the biggest company in Türkiye has been examined by working capital management. During the period, in 1 989-1 993 years, the financial tables of the firm have been taken up. In analysing of budget indicators, two methods have been used. Firstly, the changings in assets and liabilities especially belong to current assets and short term debts have been calculated, therefore a view has been advanced. Secondly, the effects of inflation rate changing of indicators have been omitted. So, the reel changings have been obtained. XII Inventory management involves determining how much inventory to hold, when to place orders, and how many units to order at a time. Because the cost of holding inventory is high, inventory management is important. Inventory costs can be divided into three categories: carrying costs, ordering costs, and stock-out costs. In general, carrying costs increase as the level of inventory rises, but ordering costs and stock-out costs decline with larger inventory holdings. The liquidity and solvency of a firm are closely related to its working capital posiition. Solvency represents the time state of liquidity. To be solvent entails an ability to meet debt payments on due dates by having money available in the form of cash, near or unushed credit. To be and remain solvent, it is not necessary to be liquid. It is only necessary to be able to become sufficiently liquid should the need arise. The ability to become liquid is a function of time and the state of assets in relation to cash. If too high a proportion of assets exist in a state far removed from cash, a problem of solvency can arise. To be unable to generate cash or credit when required creates the risk of insolvency. This condition is known as overtrading. Firms which overtrade cause concern in the minds of their creditors. This can lead creditors to shorten credit lines, and in some cases, to demand immediate settlement of their debts. If sufficient cash cannot be obtained, the company may be declared technically insolvent. The changes in assets and liabilities are important, for they identify the fund transfers that have been made. A decrease in an asset's value implies that a corresponding increase in cash has been generated from this asset. Alternatively, an increase in an asset's value means that additional funds have been invested, which implies a decrease in cash. A decrease in cash can also be achieved by reducing liabilities, while any increases in liabilities or net worth, or shareholders' equity, mean an increase in funds. These sources and uses of funds can be summarised as follows: Sources of funds : Decrease in assets, increase in liabilities, increase in net worth. Uses of funds: Increase in assets, decrease in liabilities, decrease in net worth. XI The management of working capital is concerned with two distinct but interwoven sets of activities: short term and long term financial operations. The former poses the problem of managing the individual current asset balances which make up the gross working capital position. Long term working capital management is concerned with providing and funding the volume of net working capital required by the company's current and future activities. The fundamental problem posed in the management of net and gross working capital can be illustrated by examining the effects on a company of an increase in sales. To fill new orders extra units must be produced. Extra production requires additional raw materials, labour and overhead expenses. Even after the sale is effected an interval of time will elapse before payment is received. Throughout the manufacturing, selling and delivery period the company's activities have to be financed. Though the effects of this financing will eventually be reflected the current and quick ratios, it is the pattern and timing of the expenditures and receipts that generates the company's current liqudity and solvency. An obvious problem concerning the management of a company's net working capital is the impact of inflation on the value of these assets. In times of high rates of inflation the money values of stocks and debtors can rise very rapidly. The value of trade creditors will also rise, but if the company is engaged in manufacturing, the impact of inflation is greater on the asset side of the balance sheet. As a result, incremental long term funds have to be found to finance this inflationary addition to the value of net working capital. To the extent that the company's long term funds are partly represented by long term debt, the exposure of these net assets to erosion by inflation is lessened. Incremental debt brings incremental financial risk and to achieve an acceptable balance this risk has to be weighed against the certain erosion of value caused by inflation. In the sixth and last section, a firm which is one of the biggest company in Türkiye has been examined by working capital management. During the period, in 1 989-1 993 years, the financial tables of the firm have been taken up. In analysing of budget indicators, two methods have been used. Firstly, the changings in assets and liabilities especially belong to current assets and short term debts have been calculated, therefore a view has been advanced. Secondly, the effects of inflation rate changing of indicators have been omitted. So, the reel changings have been obtained. XII Inventory management involves determining how much inventory to hold, when to place orders, and how many units to order at a time. Because the cost of holding inventory is high, inventory management is important. Inventory costs can be divided into three categories: carrying costs, ordering costs, and stock-out costs. In general, carrying costs increase as the level of inventory rises, but ordering costs and stock-out costs decline with larger inventory holdings. The liquidity and solvency of a firm are closely related to its working capital posiition. Solvency represents the time state of liquidity. To be solvent entails an ability to meet debt payments on due dates by having money available in the form of cash, near or unushed credit. To be and remain solvent, it is not necessary to be liquid. It is only necessary to be able to become sufficiently liquid should the need arise. The ability to become liquid is a function of time and the state of assets in relation to cash. If too high a proportion of assets exist in a state far removed from cash, a problem of solvency can arise. To be unable to generate cash or credit when required creates the risk of insolvency. This condition is known as overtrading. Firms which overtrade cause concern in the minds of their creditors. This can lead creditors to shorten credit lines, and in some cases, to demand immediate settlement of their debts. If sufficient cash cannot be obtained, the company may be declared technically insolvent. The changes in assets and liabilities are important, for they identify the fund transfers that have been made. A decrease in an asset's value implies that a corresponding increase in cash has been generated from this asset. Alternatively, an increase in an asset's value means that additional funds have been invested, which implies a decrease in cash. A decrease in cash can also be achieved by reducing liabilities, while any increases in liabilities or net worth, or shareholders' equity, mean an increase in funds. These sources and uses of funds can be summarised as follows: Sources of funds : Decrease in assets, increase in liabilities, increase in net worth. Uses of funds: Increase in assets, decrease in liabilities, decrease in net worth. XI The management of working capital is concerned with two distinct but interwoven sets of activities: short term and long term financial operations. The former poses the problem of managing the individual current asset balances which make up the gross working capital position. Long term working capital management is concerned with providing and funding the volume of net working capital required by the company's current and future activities. The fundamental problem posed in the management of net and gross working capital can be illustrated by examining the effects on a company of an increase in sales. To fill new orders extra units must be produced. Extra production requires additional raw materials, labour and overhead expenses. Even after the sale is effected an interval of time will elapse before payment is received. Throughout the manufacturing, selling and delivery period the company's activities have to be financed. Though the effects of this financing will eventually be reflected the current and quick ratios, it is the pattern and timing of the expenditures and receipts that generates the company's current liqudity and solvency. An obvious problem concerning the management of a company's net working capital is the impact of inflation on the value of these assets. In times of high rates of inflation the money values of stocks and debtors can rise very rapidly. The value of trade creditors will also rise, but if the company is engaged in manufacturing, the impact of inflation is greater on the asset side of the balance sheet. As a result, incremental long term funds have to be found to finance this inflationary addition to the value of net working capital. To the extent that the company's long term funds are partly represented by long term debt, the exposure of these net assets to erosion by inflation is lessened. Incremental debt brings incremental financial risk and to achieve an acceptable balance this risk has to be weighed against the certain erosion of value caused by inflation. In the sixth and last section, a firm which is one of the biggest company in Türkiye has been examined by working capital management. During the period, in 1 989-1 993 years, the financial tables of the firm have been taken up. In analysing of budget indicators, two methods have been used. Firstly, the changings in assets and liabilities especially belong to current assets and short term debts have been calculated, therefore a view has been advanced. Secondly, the effects of inflation rate changing of indicators have been omitted. So, the reel changings have been obtained.