Working capital management is an important aspect of corporate finance because it directly affects the profitability and liquidity of a company. Working Capital Management is a way of deploying current liabilities and current assets in an efficient way to maximize on short-term liquidity. Working capital is a financial barometer which acts as a representative of operating liquidity available to a firm, basically working capital is the difference between current assets of a firm that is cash or convertible
According to Hussein and Tamini (2007), risk management is the foundation of the banking practices. Due to the nature of the business banks, operate in a volatile environment facing a huge amount of risks associated with credit, market, operations, reputation, foreign exchange and liquidity. So adopting effective risk management practices by banks to face such risks successfully is a vital thing. Thereby the study investigates risk management practices on profitability of banking sector in Sri Lanka
Background of the study Corporate financial management primarily deals with three core areas that have a bearing on a firm’s financial goals. As postulated by Firer et al (2008), these three core areas of corporate finance are as follows: (1) capital budgeting, which encapsulates the process of planning and managing a firm’s long-term investments; (2), capital structure, which outlines the specific mixture of long-term debt and equity maintained by a firm and last, (3) working capital management, which deals
receivable, inventories etc. And they defined working capital management as setting working capital policy and implementing it on day today basis. A company’s working capital affects its liquidity as well as profitability. Hence, it should be properly managed (Taleb et al., 2010).
In this project we are going to talk about a major case and a minor case related to the risks that have a high probability in causing the banks to fail. The major case is a bout Petra Bank which was closed in the late 1980s. And the minor case is about a German bank (Heristate bank) which was closed in the early 1970s. Methodology We used our own analysis on the whole case based on the governmental public statements. Also, public statements from the organization which is Petra Bank. Moreover
In business the current assets includes cash. Cash is necessary for going concern. It should be kept sufficiently for meeting the obligation. In case shortage of cash occurs then it will slow down the operation of the business & in case any excess of it then it is unproductive. In assets, cash is more unproductive i.e. it doesn’t contribute anything to business, while fixed assets like plant, machinery etc. & in current assets such as inventory will add to business earning capacity. The money can
pressing need to institute an enterprise risk management program in the company and has asked the firm’s financial analyst to prepare a report to brief the firm’s executives on this topic. In this case study, the concepts of enterprise risk management, the various components of an ERM framework, the reasons risk manage might increase the corporation’s value, the description of risk events, and how companies can reduce these risks are discussed. Also, the case study contains illustr4ations on how the use
development. And its proof by the new banks were established in the lasts 15 years, and it will be created a competitive in banking industry. Industry Indonesian banks are faced with various challenges due to the slowdown economy and tightening liquidity limiting capacity growth credit and led to increased NPI banking sector. Bank is an intermediary that can encourage progress development through credit facilities and the easiness of payment and withdrawal in the transaction process performed by
Financial Risk Management Financial risk management refers to the process of financially viable value in any organization. Financial instruments are put in use to assist the management team to manage disclosure to risk, principally credit risk and market risk. Other risks include equity risks, supplier risks, customer risks, partner risks, financing risks, liquidity risks and risks related to interest rates, exchange rates and commodity prices. The algorithm of financial risk management is similar
This case study primarily focuses on the International Finance Corporation’s efforts to bring about socio economic development in the region of Magadi division by investing in a key player in the region- Magadi Soda Company. It is part of International Finance Corporation’s efforts to help people out of poverty by investing in the private sector. In this case, the Magadi Soda Ash Company is the key aspect of the private sector of magadi Division. Formerly known as the Magadi Soda Company, Tata Chemicals