Influencing the components of the cash-to-cash cycle Case Study

Influencing the components of the cash-to-cash cycle - Case Study Examplehe same none, it is clear that the company cannot monitor or describe their profits adequately since they have not put in place the appropriate mechanisms to support this particular venture. Furthermore, the case study shows that the management of the company in question also focuses on the companys debt structure. Essentially this is a good move, but there is the need to also lay emphasis on the functional capital aspect of the company since this is an important part of the company that comes in handy during the fundamental analysis of the company is carried out. However, this paper strives to highlight close to of the cash models that need to be incorporated in a bid to curb the looming crisis that is going to face the company as a result of the neglect of this important aspect of the company model.First and foremost, the working capital can be defined as the metric for the calculation of the companys liq uidity. Apparently, the approach shot of working capital is the most appropriate approach to be undertaken by this particular company. On that note, the analogy of working capital will come in handy since the assets to be liquidated in this particular business are dependent on the time period of investment. In simple terms, the current investments are not to be liquidated in the short term but on the long term. However, in the instance of high working capital, this indicates that a huge sum of bills will be constrained in the bank accounts receivables and the inventory of the company. Consequently, this can be characterised as a level of pure investment strategies since the time at which the money is constrained in the bank accounts, profits could have been generated and thus the companys profit margins could have risen drastically. Thus it is worth noting that the working capital could also be used as a means for the measurement and the determination of the liquidity state of the company. On the same note, this approach could advert to better the company both