MindMap Gallery working capital management
This is a mind map about working capital management, including strategy, cash management, accounts receivable management, inventory management, Short-term debt management, etc.
Edited at 2024-02-07 21:28:48This Valentine's Day brand marketing handbook provides businesses with five practical models, covering everything from creating offline experiences to driving online engagement. Whether you're a shopping mall, restaurant, or online brand, you'll find a suitable strategy: each model includes clear objectives and industry-specific guidelines, helping brands transform traffic into real sales and lasting emotional connections during this romantic season.
This Valentine's Day map illustrates love through 30 romantic possibilities, from the vintage charm of "handwritten love letters" to the urban landscape of "rooftop sunsets," from the tactile experience of a "pottery workshop" to the leisurely moments of "wine tasting at a vineyard"—offering a unique sense of occasion for every couple. Whether it's cozy, experiential, or luxurious, love always finds the most fitting expression. May you all find the perfect atmosphere for your love story.
The ice hockey schedule for the Milano Cortina 2026 Winter Olympics, featuring preliminary rounds, quarterfinals, and medal matches for both men's and women's tournaments from February 5–22. All game times are listed in Eastern Standard Time (EST).
This Valentine's Day brand marketing handbook provides businesses with five practical models, covering everything from creating offline experiences to driving online engagement. Whether you're a shopping mall, restaurant, or online brand, you'll find a suitable strategy: each model includes clear objectives and industry-specific guidelines, helping brands transform traffic into real sales and lasting emotional connections during this romantic season.
This Valentine's Day map illustrates love through 30 romantic possibilities, from the vintage charm of "handwritten love letters" to the urban landscape of "rooftop sunsets," from the tactile experience of a "pottery workshop" to the leisurely moments of "wine tasting at a vineyard"—offering a unique sense of occasion for every couple. Whether it's cozy, experiential, or luxurious, love always finds the most fitting expression. May you all find the perfect atmosphere for your love story.
The ice hockey schedule for the Milano Cortina 2026 Winter Olympics, featuring preliminary rounds, quarterfinals, and medal matches for both men's and women's tournaments from February 5–22. All game times are listed in Eastern Standard Time (EST).
working capital management
Strategy
Radical
【Off-season】Easily realizable rate<1
【Peak Season】Easy Realizability Rate<1
Continuity of funding sources: weak; debt repayment pressure: high; management level: difficult
Moderate
【Off-season】Easy cash rate=1
【Off-season】Easy cash rate=1
Conservative
【Off-season】Easily realizable rate>1
【Peak Season】Easy Realizability Rate<1
Sustainability of funding sources: strong; debt repayment pressure: small; management level: easy
A: Radical, B: Moderate, C: Conservative
cash management
cost analysis model
Inventory mode
Opportunity cost = average cash holdings × opportunity cost rate of holding cash
Transaction cost = number of transactions × cost per transaction
Optimal cash holdings =
Minimum relevant total cost =
random pattern
Accounts receivable management
Credit Standard Considerations
Quality, ability, capital, mortgage, conditions
Whether to change credit policy
Calculate ▲Profit
▲Revenue =▲Sales × Unit Contribution Margin
Calculate the cost
▲Accrued interest on funds occupied by accounts receivable
Accrued interest on accounts receivable = funds occupied by accounts receivable × capital cost
Funds occupied by accounts receivable = average balance of accounts receivable × variable cost rate
Average balance of accounts receivable = daily sales x average cash collection period
Average cash collection period = ∑ Number of cash collection days under various circumstances × corresponding customer proportion
▲Interest on funds occupied by inventory
=Funds occupied by inventory×Capital cost =Average balance of inventory×Capital cost
▲Cash discount cost
= New sales level × New cash discount rate × Proportion of customers who enjoy cash discounts - Old sales level × Old cash discount rate × Proportion of customers who enjoy cash discounts
▲Income and expenditure expenses
Look at the meaning of the question
▲Bad debt losses
Look at the meaning of the question
▲Accrued interest on funds occupied by accounts payable
=Funds occupied by accounts payable×Capital cost
① ② ③ ④ ⑤-⑥
Calculate ▲ pre-tax profit and loss
=▲Income-▲Cost
Comparison ▲ Pre-tax profit and loss
>0, choose the changed plan; otherwise, choose the former
Inventory management
total cost
acquisition cost
Ordering cost
Ordering fixed costs
Ordering variable cost
=
acquisition cost
= Annual inventory requirements × unit price
storage cost
Store fixed costs
storage variable costs
=
stockout cost
The reasonable insurance reserve amount is (out of stock cost reserve cost) minimum
Related formulas
Out-of-stock cost = Unit out-of-stock cost × Out-of-stock quantity for one order × Number of orders per year
Insurance reserve cost = insurance reserve amount × unit storage variable cost
Reorder point R = average delivery time × average daily demand d insurance reserve B
Calculation process
Set insurance reserve B (the growth value is 0 annual requirements/number of days in a year and so on), and the corresponding reorder point
Calculate ① demand quantity and out-of-stock quantity under various circumstances (required quantity - reorder point), and expected value of shortage (probability under various circumstances × out-of-stock quantity)
Calculate stockout costs, storage costs, and total costs
Loop through the above ①-③, and then select the one with the smallest total cost
The growth value of B is 0 annual demand/number of days in a year, and so on.
short term debt management
Features
Short term, high risk; fast financing, easy to obtain; few restrictions, high flexibility; low capital cost,
Business credit financing
form
Accounts payable, notes payable, accounts payable in advance
Features
Easy to obtain; no cash discount or use of non-interest-bearing bills, no cost.
When a cash discount exists, the cost of giving up the cash discount is higher.
calculate
【Simple interest】
【Compound interest】
Decision principles
Forgone cash discount cost > annual interest rate on short-term borrowings
Enjoy cash discount
Forgone cash discount cost < annual interest rate on short-term borrowings
Give up cash discount
effective annual interest rate
revolving credit agreement
Interest: revolving credit amount × loan interest rate, unused borrowing portion * commitment rate
Actual available loan amount: (revolving credit amount - loan amount) × revolving credit amount
compensating balance
Interest: Borrowed amount × loan interest rate
Actual loan amount available: Borrowing amount × (1-compensatory balance ratio)
effective annual interest rate
collection law
Effective annual interest rate = quoted interest rate
discount method
Effective annual interest rate > quoted interest rate
interest rate increase method
Effective annual interest rate = 2 × quoted interest rate
Q*: Economic order quantity K: Unit variable cost of each order D: Annual inventory requirement Kc: Unit storage variable cost U: Inventory unit price