Skip to Content
Fundamentals of Corporate Finance, Second Edition
book

Fundamentals of Corporate Finance, Second Edition

by Robert Parrino, David S. Kidwell, Thomas W. Bates
October 2011
Beginner
778 pages
36h 16m
English
Wiley
Content preview from Fundamentals of Corporate Finance, Second Edition

14

Working Capital Management

image

HolgerBurmeister/Alamy

Learning Objectives

image Define net working capital, discuss the importance of working capital management, and compute a firm's net working capital.

image Define the operating and cash conversion cycles, explain how are they used, and compute their values for a firm.

image Discuss the relative advantages and disadvantages of pursuing (1) flexible and (2) restrictive current asset management strategies.

image Explain how accounts receivable are created and managed, and compute the cost of trade credit.

image Explain the trade-off between carrying costs and reorder costs, and compute the economic order quantity for a firm's inventory orders.

image Define cash collection time, discuss how a firm can minimize this time, and compute the economic costs and benefits of a lockbox. ...

Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.

Read now

Unlock full access

More than 5,000 organizations count on O’Reilly

AirBnbBlueOriginElectronic ArtsHomeDepotNasdaqRakutenTata Consultancy Services

QuotationMarkO’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.
Julian F.
Head of Cybersecurity
QuotationMarkI wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.
Addison B.
Field Engineer
QuotationMarkI’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.
Amir M.
Data Platform Tech Lead
QuotationMarkI'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.
Mark W.
Embedded Software Engineer

You might also like

Fundamentals of Corporate Finance

Fundamentals of Corporate Finance

Robert Parrino
Corporate Finance, 6th Edition

Corporate Finance, 6th Edition

Pierre Vernimmen, Pascal Quiry, Yann Le Fur

Publisher Resources

ISBN: 9780470876442Purchase book