An Example On How To Compute The Working Capital Requirements

In earlier articles,we learned about cash conversion cycle and other working capital management techniques.

Below is a simple illustration on how to compute the working capital requirement and a few suggestion to improve the computed amount:-

Let’s have say Division A in Company ABC Ltd plans to launch a new product. The plan is [...]

Survey-Type of Services,Reasons,Selecting Site &Success Factors In Implementing Share Service Centres Or Functions

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Type of Services,Reasons,Selecting Site &Success Factors of A Shared Service Centre

The general rule of the thumb is that rule-based,homogeneous,non-critical transaction processes are suitable for shared services.

In a survey on SSC,the following are revealed ( [...]

How To Use Days Inventory Outstanding (DIO) for Better Stock Management

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In my earlier article on working capital management,we noted that days inventory outstanding forms one part of the component of the cash conversion cycle.

This article attempts to explore the further detailed use of DIO in stock management:

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How To Compute Cash Conversion Cycle &Example

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There are few ways of computing the components of the Cash Conversion Cycle.

One way is to use the exhaustion method. (Refer to my earlier article on this). This is mainly for internal use for management reporting.

There is another common [...]