Saturday, October 2, 2010

R-46 Working Capital Management

a. describe primary and secondary source of liquidity and factors that influence a company's liquidity position

b. compare a company's liquidity measures with those of peer companies

c. evaluate overall working capital effectiveness of a company, using the operating and cash conversion cycles, and compare its effectiveness with other peer companies

d. identify and evaluate the necessary tools to use in managing a company's net daily cash position

e. compute and interpret comparable yields on various securities, compare portfoio returns against a standard benchmark, and evaluate a company's short-term investment policy guidelines


f. assess the performance of a company's accounts receivable, inventory management, and accounts payable functions against historical figures and compare peer company values

g. evaluate the choices of short-term funding available to a company and recommend a financing method