Week 11 Discussion- Managerial Finance

Week 8 Learning Resources

Managerial Finance

Basic Working Capital Concepts

Using these resources, you will examine the concept of working capital management. When organizations evaluate their current assets and liabilities, it can be beneficial for them to apply a working capital management strategy to utilize those aspects in the best way possible. Another goal of incorporating this strategy is being able to operate more efficiently. The main ratios in focus are the working capital ratio, the collection ratio, and the inventory ratio.

· Brigham E. F., & Houston, J. F. (2022). Working capital management. In  Fundamentals of financial management (16th ed., pp. 558–590). Cengage Learning.

· Bartram, P. (2013, July-August).  8 ways to … improve working capitalLinks to an external site. .  Financial Management , 42.

· Moy, R. (2014, January 15).  Short-term financing  Links to an external site.  [Video]. YouTube. https://www.youtube.com/watch?v=SkU6L-pdPIg

The Cash Conversion Cycle

The cash conversion cycle (CCC) is a measure that managers take into account to determine how long it would take to acquire cash from their investments and sales. The CCC may also be called the net operating cycle or just the cash cycle. Through these resources, you will explore the calculations and formulas involved in the cash conversion cycle.

· AccountingTools. (2021, April 17).  Inventory conversion period definition  Links to an external site. . http://www.accountingtools.com/questions-and-answers/what-is-the-inventory-conversion-period.html

· AccountingTools. (2021, April 11).  Collection period definition  Links to an external site. . https://www.accountingtools.com/articles/collection-period

· AccountingTools. (2021, April 10).  Accounts payable days formula  Links to an external site. . https://www.accountingtools.com/articles/days-payable-outstanding

· Good Calculators. (2021).  Cash conversion cycle calculator  Links to an external site. . https://goodcalculators.com/cash-conversion-cycle-calculator/

· The Motley Fool. (2016, November 15).  Foolish fundamentals: Cash conversion cycle—retail  Links to an external site. . http://www.fool.com/investing/value/2006/09/12/foolish-fundamentals-cash-conversion-cycle--retail.aspx

Projected Growth Requirements

Through these resources, you will explore the topic of forecasting. As part of the quarterly and annual reports provided to shareholders, companies need to develop projections for their revenue and growth. These estimated earnings are not only useful to shareholders and stock analysts, but they can also be a helpful tool for managers to use when making decisions within the organization.

· Brigham E. F., & Houston, J. F. (2022). Financial planning and forecasting. In  Fundamentals of financial management (16th ed., pp. 598–616). Cengage Learning.

· Cundiff, K. (2019, March 25).  Additional funds needed (AFN)  Links to an external site.  [Video]. YouTube. https://www.youtube.com/watch?v=kwM1Y2uHgeI

Cross Rates Between Currencies

When operating in a multinational organization, managers may need to determine the cross rate between currencies of different countries and regions. This rate represents a comparison of two currencies while using a third currency (often a major currency) as the main reference point for comparison. Using these resources, you will explore cross rates between countries.

· Brigham E. F., & Houston, J. F. (2022). Multinational financial management. In  Fundamentals of financial management (16th ed., pp. 625–656). Cengage Learning.

· Javidan, M., Teagarden, M., & Bowen, D. (2010, April 1).  Managing yourself: Making it overseas .  Harvard Business Review, 88 (4), 109–113.

Important Documents for The Week

· Document:  Module 3 Assignment Part 1 Template (Excel spreadsheet) Download Module 3 Assignment Part 1 Template (Excel spreadsheet)

· Document:  Module 3 Assignment Part 2 Template (Word document