工商管理外文文献Word下载.docx

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capitalmanagement；

measures;

fundsanalysis

Introduction

Theimportanceofefficientworkingcapitalmanagementisindisputable.Workingcapitalisthedifferencebetweenresourcesincashorreadilyconvertibleintocash（CurrentAssets）andorganizationalcommitmentsforwhichcashwillsoonberequired（CurrentLiabilities）.Theobjectiveofworkingcapitalmanagementistomaintaintheoptimumbalanceofeachoftheworkingcapitalcomponents。

Businessviabilityreliesontheabilitytoeffectivelymanagereceivables。

inventory.andpayables。

Firmsareabletoreducefinancingcostsand/orincreasethefundsavailableforexpansionbyminimizingtheamountoffundstiedupincurrentassets.Muchmanagerialeffortisexpendedinbringingnon-optimallevelsofcurrentassetsandliabilitiesbacktowardoptimallevels。

Anoptimallevelwouldbeoneinwhichabalanceisachievedbetweenriskandefficiency.

ArecentexampleofbusinessattemptingtomaximizeworkingcapitalmanagementistherecurrentattentionbeinggiventotheapplicationofSixSigma®

methodology。

SixSigma®

methodologieshelpcompaniesmeasureandensurequalityinallareasoftheenterprise.Whenusedtoidentifyandrectifydiscrepancies.inefficienciesanderroneoustransactionsinthefinancialsupplychain.SixSigma®

reducesDaysSalesOutstanding（DSO）。

acceleratesthepaymentcycle.improvescustomersatisfactionandreducesthenecessaryamountandcostofworkingcapitalneeds.Thereappeartobemanysuccessstories.includingJenniferTowne’s（2002）reportofa15percentdecreaseindaysthatsalesareoutstanding。

resultinginanincreasedcashflowofapproximately＄2millionatThibodauxRegionalMedicalCenter。

Furthermore。

baddebtsdeclinedfrom＄3。

4millionto＄600。

000。

However.Waxer'

s（2003）studyofmultiplefirmsemployingSixSigma®

findsthatitisreallya“getrichslow”techniquewitharateofreturnhoveringinthe1。

2–4。

5percentrange.

EveninabusinessusingSixSigma®

methodology.an“optimal”levelofworkingcapitalmanagementneedstobeidentified。

Industryfactorsmayimpactfirmcreditpolicy.inventorymanagement.andbill—payingactivities。

Somefirmsmaybebettersuitedtominimizereceivablesandinventory.whileothersmaximizepayables。

Anotheraspectof“optimal"

istheextenttowhichpoorfinancialresultscanbetiedtosub—optimalperformance.Fortunately.theseissuesaretestablewithdatapublishedbyCFOmagazine。

whichclaimstobethesourceof“toolsandinformationforthefinancialexecutive。

"

andarethesubjectofthisresearch.

Inadditiontoprovidingmeanandvariancevaluesfortheworkingcapitalmeasuresandtheoverallmetric.twoissueswillbeaddressedinthisresearch。

Oneresearchquestionis。

“arefirmswithinaparticularindustryclusteredtogetheratconsistentlevelsofworkingcapitalmeasures?

Forinstance。

arefirmsinoneindustryabletoquicklytransfersalesintocash。

whilefirmsfromanotherindustrytendtohavehighsaleslevelsfortheparticularlevelofinventory。

Theotherresearchquestionis。

“doesworkingcapitalmanagementperformanceforfirmswithinagivenindustrychangefromyear-to-year?

”

Thefollowingsectionpresentsabriefliteraturereview。

Next。

theresearchmethodisdescribed.includingsomeinformationabouttheannualWorkingCapitalManagementSurveypublishedbyCFOmagazine.Findingsarethenpresentedandconclusionsaredrawn.

Theimportanceofworkingcapitalmanagementisnotnewtothefinanceliterature.Overtwentyyearsago.LargayandStickney（1980）reportedthatthethen—recentbankruptcyofW.T。

Grant.anationwidechainofdepartmentstores.shouldhavebeenanticipatedbecausethecorporationhadbeenrunningadeficitcashflowfromoperationsforeightofthelasttenyearsofitscorporatelife。

AspartofastudyoftheFortune500’sfinancialmanagementpractices.GilbertandReichert（1995）findthataccountsreceivablemanagementmodelsareusedin59percentofthesefirmstoimproveworkingcapitalprojects.whileinventorymanagementmodelswereusedin60percentofthecompanies。

Morerecently.Farragher。

KleimanandSahu（1999）findthat55percentoffirmsintheS&

PIndustrialindexcompletesomeformofacashflowassessment.butdidnotpresentinsightsregardingaccountsreceivableandinventorymanagement。

orthevariationsofanycurrentassetaccountsorliabilityaccountsacrossindustries。

Thus。

mixedevidenceexistsconcerningtheuseofworkingcapitalmanagementtechniques.

Theoreticaldeterminationofoptimaltradecreditlimitsarethesubjectofmanyarticlesovertheyears（e。

g。

。

Schwartz1974；

Scherr1996）。

withscantattentionpaidtoactualaccountsreceivablemanagement。

Acrossalimitedsample。

WeinraubandVisscher（1998）observeatendencyoffirmswithlowlevelsofcurrentratiostoalsohavelowlevelsofcurrentliabilities.Simultaneouslyinvestigatingaccountsreceivableandpayableissues。

Hill.Sartoris。

andFerguson（1984）finddifferencesinthewaypaymentdatesaredefined。

Payeesdefinethedateofpaymentasthedatepaymentisreceived。

whilepayorsviewpaymentasthepostmarkdate.AdditionalWCMinsightacrossfirms.industries。

andtimecanaddtothisbodyofresearch。

ManessandZietlow（2002。

51.496）presentstwomodelsofvaluecreationthatincorporateeffectiveshort—termfinancialmanagementactivities。

However.thesemodelsaregenericmodelsanddonotconsideruniquefirmorindustryinfluences。

ManessandZietlowdiscussindustryinfluencesinashortparagraphthatincludestheobservationthat.“Anindustryacompanyislocatedinmayhavemoreinfluenceonthatcompany'

sfortunesthanoverallGNP"

（2002.507）。

Infact。

acarefulreviewofthis627-pagetextbookfindsonlysporadicinformationonactualfirmlevelsofWCMdimensions。

virtuallynothingonindustryfactorsexceptforsomeboxeditemswithtitlessuchas。

“ShouldaRetailerOfferanIn—HouseCreditCard”（128）andnothingonWCMstabilityovertime.Thisresearchwillattempttofillthisvoidbyinvestigatingpatternsrelatedtoworkingcapitalmeasureswithinindustriesandillustratedifferencesbetweenindustriesacrosstime.

AnextensivesurveyoflibraryandInternetresourcesprovidedveryfewrecentreportsaboutworkingcapitalmanagement。

ThemostrelevantsetofarticleswasWeiselandBradley’s（2003）articleoncashflowmanagementandoneofinventorycontrolasaresultofeffectivesupplychainmanagementbyHadley（2004）.

TheCFORankings

ThefirstannualCFOWorkingCapitalSurvey。

ajointprojectwithRELConsultancyGroup.waspublishedintheJune1997issueofCFO（MintzandLezere1997）。

RELisaLondon.England-basedmanagementconsultingfirmspecializinginworkingcapitalissuesforitsgloballistofclients。

Theoriginalsurveyreportsseveralworkingcapitalbenchmarksforpubliccompaniesusingdatafor1996。

Eachcompanyisrankedagainstitspeersandalsoagainsttheentirefieldof1。

000companies.RELcontinuestoupdatetheoriginalinformationonanannualbasis。

RELusesthe“cashflowfromoperations”valuelocatedonfirmcashflowstatementstoestimatecashconversionefficiency（CCE）。

Thisvalueindicateshowwellacompanytransformsrevenuesintocashflow。

A“daysofworkingcapital”（DWC）valueisbasedonthedollaramountineachoftheaggregate。

equally—weightedreceivables。

inventory.andpayablesaccounts。

The“daysofworkingcapital”（DNC）representsthetimeperiodbetweenpurchaseofinventoryonacccountfromvendoruntilthesaletothecustomer.thecollectionofthereceivables.andpaymentreceipt。

itreflectsthecompany’sabilitytofinanceitscoreoperationswithvendorcredit.AdetailedinvestigationofWCMispossiblebecauseCFOalsoprovidesfirmandindustryvaluesfordayssalesoutstanding（A/R）。

inventoryturnover。

anddayspayablesoutstanding（A/P）.

Workingcapitalmanagementcomponentdefinitionsandaveragevaluesfortheentire1996–2000period。

Acrossthenearly1。

000firmsinthesurvey。

cashflowfromoperations.definedascashflowfromoperationsdividedbysalesandreferredtoas“cashconversionefficiency"

（CCE）。

averages9。

0percent。

Incorporatinga95percentconfidenceinterval。

CCErangesfrom5.6percentto12.4percent.Thedaysworkingcapital（DWC）。

definedasthesumofreceivablesandinventorieslesspayablesdividedbydailysales。

averages51.8daysandisverysimilartothedaysthatsalesareoutstanding（50。

6）。

becausetheinventoryturnoverrate（onceevery32。

0days）issimilartothenumberofdaysthatpayablesareoutstanding（32。

4days）。

Inallinstances.thestandarddeviationisrelativelysmall。

suggestingthattheseworkingcapitalmanagementvariablesareconsistentacrossCFOreports.

CFOmagazineprovidesanoverallworkingcapitalrankingforfirmsinitssurvey。

usingthefollowingequation：

Industry—baseddifferencesinoverallworkingcapitalmanagementarepresentedforthetwenty—sixindustriesthathadatleasteightcompaniesincludedintherankingseach