Podcast
Questions and Answers
True or false: The variation of working capital can be calculated in two ways: by calculating the delta item by item or by calculating the BFR of year N and year N-1 and taking the difference.
True or false: The variation of working capital can be calculated in two ways: by calculating the delta item by item or by calculating the BFR of year N and year N-1 and taking the difference.
True
True or false: The formula for calculating the delta working capital is: $\Delta\text{WorkingCapital} = \Delta\text{Inventories} + \Delta\text{Accounts Receivable} + \Delta\text{Other current assets (excluding Cash*)} - \Delta\text{Accounts Payable} - \Delta\text{Other current liabilities (excluding Shortterm Financial debt)}$.
True or false: The formula for calculating the delta working capital is: $\Delta\text{WorkingCapital} = \Delta\text{Inventories} + \Delta\text{Accounts Receivable} + \Delta\text{Other current assets (excluding Cash*)} - \Delta\text{Accounts Payable} - \Delta\text{Other current liabilities (excluding Shortterm Financial debt)}$.
True
True or false: $\Delta\text{WorkingCapital} = \text{Working capital N} - \text{Working capital N-1}$, with the same exclusions as above: Cash and <1 Year Financial debt.
True or false: $\Delta\text{WorkingCapital} = \text{Working capital N} - \text{Working capital N-1}$, with the same exclusions as above: Cash and <1 Year Financial debt.
True
True or false: A decrease in payment delays from customers has a positive impact on cash.
True or false: A decrease in payment delays from customers has a positive impact on cash.
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True or false: An increase in payment delays from suppliers has a positive impact on cash.
True or false: An increase in payment delays from suppliers has a positive impact on cash.
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True or false: An increase in stocks has a negative impact on cash.
True or false: An increase in stocks has a negative impact on cash.
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True or false: An increase in sales with customer payment delays has a negative impact on cash.
True or false: An increase in sales with customer payment delays has a negative impact on cash.
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True or false: Generally, growing companies have a growing delta of BFR, which has a negative impact on cash.
True or false: Generally, growing companies have a growing delta of BFR, which has a negative impact on cash.
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True or false: The formula for calculating net fixed assets is: $\text{Net Fixed Assets N} = \text{Bilan} + \text{Net Fixed assets N-1} - \text{Depreciation}$.
True or false: The formula for calculating net fixed assets is: $\text{Net Fixed Assets N} = \text{Bilan} + \text{Net Fixed assets N-1} - \text{Depreciation}$.
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True or false: If $\frac{\text{Capex}},{\text{depreciation}} > 1$, then the company is investing.
True or false: If $\frac{\text{Capex}},{\text{depreciation}} > 1$, then the company is investing.
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Which one of these is the formula for calculating the net fixed assets?
Which one of these is the formula for calculating the net fixed assets?
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Which one of these is the formula for calculating the delta working capital?
Which one of these is the formula for calculating the delta working capital?
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Which one of these is the correct way to calculate the variation of working capital?
Which one of these is the correct way to calculate the variation of working capital?
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Which one of these is true about the impact of an increase in payment delays from suppliers on cash?
Which one of these is true about the impact of an increase in payment delays from suppliers on cash?
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Which one of these is true about the impact of the delta of BFR on cash for growing companies?
Which one of these is true about the impact of the delta of BFR on cash for growing companies?
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Which one of these is true about the relationship between Capex and depreciation?
Which one of these is true about the relationship between Capex and depreciation?
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Which one of these is the formula for calculating the delta working capital?
Which one of these is the formula for calculating the delta working capital?
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Which one of these is true about the impact of a decrease in payment delays from customers on cash?
Which one of these is true about the impact of a decrease in payment delays from customers on cash?
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Which one of these is true about the impact of an increase in stocks on cash?
Which one of these is true about the impact of an increase in stocks on cash?
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Which one of these is true about the impact of an increase in sales with customer payment delays on cash?
Which one of these is true about the impact of an increase in sales with customer payment delays on cash?
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Study Notes
Working Capital Variations
- Variation of working capital can be calculated item by item or by finding the difference between BFR (Besoin en Fonds de Roulement) of year N and year N-1.
- Delta Working Capital formula:
- $\Delta\text{Working Capital} = \Delta\text{Inventories} + \Delta\text{Accounts Receivable} + \Delta\text{Other current assets (excluding Cash)} - \Delta\text{Accounts Payable} - \Delta\text{Other current liabilities (excluding Short-term Financial debt)}$.
- Another way to express working capital change:
- $\Delta\text{Working Capital} = \text{Working Capital N} - \text{Working Capital N-1}$, excluding cash and short-term financial debt.
Cash Flow Impacts
- Decreasing payment delays from customers improves cash flow positively.
- Increasing payment delays from suppliers enhances cash flow by delaying outgoing payments.
- Rising stock levels negatively affect cash flow due to additional capital tied up in inventory.
- Increased sales with customer payment delays can adversely impact cash flow as funds are received later.
Implications for Growing Companies
- Growing companies typically see an increasing delta of BFR, which negatively impacts cash flow due to escalating capital requirements.
Fixed Asset Calculation
- The formula for calculating net fixed assets is:
- $\text{Net Fixed Assets N} = \text{Bilan} + \text{Net Fixed Assets N-1} - \text{Depreciation}$.
- A ratio of $\frac{\text{Capex}}{\text{Depreciation}} > 1$ indicates that the company is investing more than it's depreciating, signaling potential growth or expansion.
Formulas Overview
- Conditions and formulas for calculating working capital, delta working capital, and net fixed assets are crucial for analyzing a company's financial health.
- Understanding the effects of working capital dynamics and asset management on cash flow is vital for effective financial planning.
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Description
Quiz sur la gestion de trésorerie et la prévision des flux de trésorerie. Testez vos connaissances sur la différence entre le résultat net et le flux de trésorerie, ainsi que sur les problèmes de liquidités auxquels les entreprises peuvent être confrontées. Apprenez à anticiper les besoins de financement d'une start-up et à évaluer les risques de cessation des paiements.
