Working Capital Strategies Paper

There are large and small businesses all across the country, with many different public and private accounting firms that handle their accounts. Many of these businesses are raking in millions and millions of dollars a year. Wal-Mart is one of them. We will be exploring Wal-Mart and how it came about as a business, along with examining their balance sheets, income statement, and the cash flow statement. We will also be taking a look at what Wal-Mart’s current revenues are over the annual reporting periods, and who handles their accounting process.

After carefully reviewing the income statement, balances sheet and cash flow it seems that the company has a negative cash flow for 1998, so even before thinking about obtaining internal and external resources for long term investment, the company must assure resources for their own working capital.

Working capital is of major importance to a business because it controls the current day-to-day operations including payment of salaries, wages, inventory, raw materials, other business expenses, purchase of stocks, buildings, land, fixed assets, etc.

In every business there is always a need for capital expenditures. Capital Expenditures can be very beneficial and can also differentiate the numbers from rival companies. According to readings “capital expenses are extensive and mostly hold a company’s substantial amount of money. Companies invest in prime property, plant, machinery, buildings and other forms of fixed assets, which also act as securities for the company. I chose to look up the Capital Expenditures of two companies that are known in many households: Walmart and Target. The annual report of mutually businesses over the past three years will be examined. This

As shown in the ratios chart, working capital has increased by $13M. Maturities of short-term investments and cash flow from operations are projected to be sufficient to sustain the company’s overall financing needs, including capital expenditures. The following corporate strategic plan identifies a project that needs financial backing.

Many companies rely on three financial resources when they are managing the operation. The three operations are land, labor, and capital. The land is a symbolization of the physical resources used to create its goods and service. Capital is the current money used to obtain human labor and resources.

n 2004, treasurers worldwide continue to strive to manage working capital more efficiently. They are under pressure to reduce Days Sales Outstanding, to measure Days Payable Outstanding, and to find alternatives for enhancing yield management due to record low interest rates. Other factors are impacting corporate treasurers as well. Corporate governance initiatives such as SarbanesOxley are increasing the treasurer’s need for access and visibility to accounts around the world. The continuous rollout of Enterprise Resource Planning (ERP) systems

For the fourth year in a row, Wal-Mart is number one on Fortune magazine 's annual list. Holding the top spot on the Fortune 500 is a distinction that many companies strive to obtain. However, does size equal financial growth and stability? This paper will research Wal-Mart 's financial situation through analyzing its many different financial ratios.

Analyzing Wal-Mart's annual report provides a positive outlook on Wal-Mart's financial health. Given the specific ratios and its comparison to other companies in the same industry, Wal-Mart is leading and more than likely will continue its dominance. Though Wal-Mart did not lead in all numbers, its leadership and strong presence of the market cements the ongoing success of the company. The review of the current ratio, quick ratio, inventory turnover ratio, debt ratio, net profit margin ratio, ROI, ROE, and P/E ratio all indicate an upbeat future for the company. The current ratio, which is defined as current assets divided by current liabilities, is a measure of

The key financial commitments that the company must make are the following ones. In fact, for sound financial management of the company, decision makers of Wal-Mart should develop consistent tools. They have to find both forecasting tools and control tools. Indeed, forecasting tools are tools that are based on objectives to achieve. In general, it is made by the internal workers to the company to guide those responsible for achieving the financial objectives of the company. Moreover, the control tools will allow to account for the situation of the company at a given time. These are boards set up by the financial team the company that will give to the company a reflection of its situation in comparison to the sector. Moreover, the performance of Wal-Mart is directly related to the performance of women and men who compose it. A priority of the company is therefore to develop a strategy for managing human resources. Good human resource management involves knowing the precise allocation of human resources, to promote their optimization in order to mobilize and develop them to achieve increased efficiency and productivity. The ability of Wal-Mart to manage its human resources effectively and mobilize its staff to achieve its objectives will depend to its extent on its ability to develop and implement a plan. This plan, on the one hand, will create an environment that will allow an attraction, retaining and the motivation a staff technical expertise and the high performance.

Capital budgeting is the most important management tool that enables managers of the organization to select the investment option that yields comprehensive cash flows and rate of return. For managers availability of capital whether in form of debt or equity is very limited and thus it become imperative for them to invest their limited and most important resource in perfect option that could prove to beneficial for the organization in the long run (Hickman et al, 2013). However, while using capital budgeting tool managers must understand its quantitative and qualitative considerations that are discussed below.

The management of cash is essential to the survival of any organization. Managing an organization’s financial operation requires knowledge of the economy and ways to maximize revenue. For any organization to operate on a daily basis adequate cash flow is required. Without cash management the organization will be unable to function because there is no cash readily available in case of inconsistencies in the market. Cash is also needed to keep the cycle of the company’s operations going.

In this paper I’ll analyze the fundamental differences between the working capital structures and components for Google and Oracle, and speculate upon the main reasons why such differences exist; how each company could improve its working capital positions. As a Wall Street Analyst who has to recommend one of the companies as an investment to a company’s clients; based solely on that company’s working capital; as an Investment Banker who has to recommend loaning a substantial amount of capital to one company based solely on that company’s working capital.

Working capital may be regarded as the blood circulatory system of any business unit. Its effective management can do much more for the success of the

Moreover, working capital management is not an end. As such, it is a basic part of the department 's general overall management. The requirements