Working Capital Management

ISBN-13: 9780199737413 / Angielski / Twarda / 2010 / 176 str.

Lorenzo A. Preve; Virginia Sarria-Allende

Opis

As soon as a firm starts operating, and especially once it starts to grow, it needs to come to a decision about how to invest funds, how much cash and inventory to maintain, how much financing to provide to customers, how to obtain the necessary funds, and how much debt to take on and in which terms--all the answers to these questions have serious consequences for a firm's cash flow and profitability.

Working Capital Management is a hands-on look at the crucial decision of how to define and finance the operating investments of a business. Starting with an overview of the fundamental framework of corporate finance, the authors set out to define the central, and usually underestimated, role that working capital plays within this structure. They show not only how to prevent the losses that result from mishandling working capital, but also how to fully exploit the strategic potential that intelligent, expert management of working capital allows. The book is the first to emphasize the relevance of the interplay between the investment and finance aspects of working capital, by discussing all of the main components of a firm's operating expenses from both an investment and finance perspective. After focusing on the varying aspects and themes of working capital, such as inventory management, strategic accounting, trade credit, and short-term debt, the authors move on to identify the long-term implications and opportunities raised by this often overlooked aspect of corporate finance.

Lorenzo Preve and Virginia Sarria-Allende have at last provided a resource that identifies the impact of day-to-day business decisions, uncovering an essential yet often overlooked aspect of all firms' financial situations.

Recenzje

Given the breadth of recent capital market disruptions, companies have undergone a thorough reevaluation of their capital structure objectives. Working capital management choices have become strategically more important as they have a direct impact into financial sustainability. This book gives light to a very complex subject in a very easy to understand manner.

O autorze

Lorenzo Preve is an associate professor at IAE Business School, Universidad Austral. His main research interests are in corporate finance, with a special emphasis in corporate risk management, working capital management and restructuring and financial distress. He is also interested in the applications of corporate finance to emerging markets. Lorenzo holds a PhD in Finance from the University of Texas at Austin. Virginia Sarria-Allende is an associate professor at IAE Business School, Universidad Austral. Her research links to all corporate finance applications, such as cost of capital, corporate valuation, working capital management, corporate restructuring, etc., with special focus in emerging markets. Virginia holds a PhD in Finance from Columbia University.