Current asset

Abstract: Most of the traditional models in production and inventory control ignore the financial states of an organization and can lead to infeasible practices in real systems. This paper is the first attempt to incorporate asset-based financing into production decisions. Instead of setting a known, exogenously determined budgetary constraint as most existing models suggest, we model the available cash in each period as a function of assets and liabilities that may be updated periodically according to the dynamics of the production activities. Furthermore, our models allow different interest rates on cash balance and outstanding loans, which is an enhancement over most traditional models in that inventory financed by a loan may be more expensive than that by out-of-pocket cash. We demonstrate the importance of joint consideration of production and financing decisions in a start-up setting in which the ability to grow the firm is mainly constrained by its limited capital and dependence on bank financing. We then explain the motivation for asset-based financing by examining the decision making at a bank and a set of retailers in a newsvendor setting.

Abstract: We characterize and measure a long-run risk return tradeoff for the valuation of financial cash flows that are exposed to fluctuations in macroeconomic growth This tradeoff features components of financial cash flows that are only realized far into the future but are still reflected in current asset values We use the recursive utility model with empirical inputs from vector autoregressions to quantify this relationship; and we study the long-run risk differences in aggregate securities and in portfolios constructed based on the ratio of book equity to market equity Finally, we explore the resulting measurement challenges and the implied sensitivity to alternative specifications of stochastic growth

Abstract: Despite numerous efforts to understand construction clients and their priorities, evidence abounds to suggest that they are largely misunderstood and dissatisfied with the performance of their consultants and contractors. The perception of poor performance may not be attributed to the consultants alone. Perhaps the clients themselves do not possess the necessary attributes to secure a successful project performance. This paper describes a survey which set out to establish the relative importance of the attributes of clients' organizations which may influence project consultants' performance using the ‘relative index ranking technique’. Project consultants were surveyed using a structured questionnaire as the main research tool and this was augmented by interviews. The most important attributes are financial stability of client (creditworthiness, current liabilities and current assets), feasibility of the project (project priorities, feasibility study and site conditions), past performance of client (cost ...

Abstract: Working capital management plays a significant role in better performance of manufacturing firms. This paper analyzes the impact of working capital management on firm’s performance in Pakistan for the period 1998 to 2007. For this purpose, balanced panel data of 204 manufacturing firms is used which are listed on Karachi Stock Exchange. The results indicate that the cash conversion cycle, net trade cycle and inventory turnover in days are significantly affecting the performance of the firms. The manufacturing firms are in general facing problems with their collection and payment policies. Moreover, the financial leverage, sales growth and firm size also have significant effect on the firm’s profitability. The study also concludes that firms in Pakistan are following conservative working capital management policy and the firms are needed to concentrate and improve their collection and payment policy. The effective policies must be formulated for the individual components of working capital. Furthermore, efficient Management and financing of working capital (current assets and current liabilities) can increase the operating profitability of manufacturing firms. For efficient working capital management, specialized persons in the fields of finance should be hired by the firms for expert advice on working capital management in the manufacturing sector.