第二十八章现金管理.pptx

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1、McGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.28-0Chapter Outline28.1 Reasons for Holding Cash28.2 Determining the Target Cash Balance28.3 Managing the Collection and Disbursement of Cash28.4 Investing Idle Cash28.5 Summary & ConclusionsMcGraw-Hill/IrwinCopyr

2、ight 2002 by The McGraw-Hill Companies, Inc. All rights reserved.28-128.1 Reasons for Holding Cash Transactions motive Compensating balancesMcGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.28-228.2 Determining the Target Cash Balance The Baumol Model The Miller-

3、Orr Model Other Factors Influencing the Target Cash BalanceMcGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.28-3Costs of Holding CashOpportunity CostsTrading costsTotal cost of holding cashC*Costs in dollars of holding cashSize of cash balanceThe investment inco

4、me foregone when holding cash.Trading costs increase when the firm must sell securities to meet cash needs.McGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.28-4The Baumol ModelF = The fixed cost of selling securities to raise cashT = The total amount of new cash

5、 neededK = The opportunity cost of holding cash: this is the interest rate.TimeCIf we start with $C, spend at a constant rate each period and replace our cash with $C when we run out of cash, our average cash balance will be .2C2C1 2 3The opportunity cost of holding is 2CKC2McGraw-Hill/IrwinCopyrigh

6、t 2002 by The McGraw-Hill Companies, Inc. All rights reserved.28-5The Baumol ModelF = The fixed cost of selling securities to raise cashT = The total amount of new cash neededK = The opportunity cost of holding cash: this is the interest rate.TimeCAs we transfer $C each period we incur a trading cos

7、t of F each period. If we need T in total over the planning period we will pay $F, T C times.2C1 2 3The trading cost is FCTMcGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.28-6The Baumol ModelC*Size of cash balanceFTKCC2cost TotalOpportunity CostsKC2FTCTrading c

8、ostsThe optimal cash balance is found where the opportunity costs equals the trading costsFKTC2*McGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.28-7The Baumol ModelOpportunity Costs = Trading CostsFCTKC2The optimal cash balance is found where the opportunity co

9、sts equals the trading costsKTFC2*Multiply both sides by CFTKC22KFTC 22McGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.28-8The Miller-Orr Model The firm allows its cash balance to wander randomly between upper and lower control limits.$TimeHZLWhen the cash bala

10、nce reaches the upper control limit H cash is invested elsewhere to get us to the target cash balance Z.When the cash balance reaches the lower control limit, L, investments are sold to raise cash to get us up to the target cash balance.McGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies, I

11、nc. All rights reserved.28-9The Miller-Orr Model Math Given L, which is set by the firm, the Miller-Orr model solves for Z and HLKFZ32*43LZH23*where s2 is the variance of net daily cash flows. The average cash balance in the Miller-Orr model is 34balancecash Average*LZ McGraw-Hill/IrwinCopyright 200

12、2 by The McGraw-Hill Companies, Inc. All rights reserved.28-10Implications of the Miller-Orr ModelTo use the Miller-Orr model, the manager must do four things:1. Set the lower control limit for the cash balance.2. Estimate the standard deviation of daily cash flows.3. Determine the interest rate. 4.

13、 Estimate the trading costs of buying and selling securities.The model clarifies the issues of cash management: The best return point, Z, is positively related to trading costs, F, and negatively related to the interest rate K.Z and the average cash balance are positively related to the variability

14、of cash flows.McGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.28-11Other Factors Influencing the Target Cash Balance Borrowing Borrowing is likely to be more expensive than selling marketable securities. The need to borrow will depend on managements desire to h

15、old low cash balances. Compensating Balance Firms have cash in the bank as a compensation for banking services. Large corporations have thousands of accounts with several dozen bankssometimes it makes more sense to leave cash alone than to manage each account on a daily basis.McGraw-Hill/IrwinCopyri

16、ght 2002 by The McGraw-Hill Companies, Inc. All rights reserved.28-12Float The difference between bank cash and book cash is called float. Float management involves controlling the collection and disbursement of cash.McGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reser

17、ved.28-1328.3 Managing the Collection and Disbursement of Cash Accelerating Collections Delaying Disbursements Disbursement Float Zero-Balance Accounts Drafts Ethical and Legal QuestionsMcGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.28-14Accelerating Collectio

18、nsCustomer mails paymentCompany receives paymentCompany deposits paymentCash receivedMail delayMail floatProcessing delayProcessing floatClearing delayClearing floattimeCollection floatMcGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.28-15Overview of Lockbox Pro

19、cessing Corporate Customers Corporate Customers Corporate Customers Corporate Customers Local Bank Collects funds from PO Boxes Envelopes opened; separation of checks and receipts Deposit of checks into bank accounts Details of receivables go to firm Firm processes receivables Bank clears checks Pos

20、t Office Box 1 Post Office Box 2McGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.28-16Delaying Disbursements1. Write check on a distant bank.2. Hold payment for several days after postmarked in office.3. Call supplier firm to verify statement accuracy for large

21、amounts.4. Mail from distant post office.5. Mail from post office that requires a great deal of handling. Firm prepares check to supplier Post Officeprocessing Delivery of check to supplier Deposit goes to suppliers bank Bank collects fundsMcGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies

22、, Inc. All rights reserved.28-17Drafts Firms sometimes use drafts instead of checks. Drafts differ from checks because they are not drawn on a bank but on an issuer (the firm) and are payable by the issuer. The bank acts only as an agent, presenting the draft to the issuer for payment. When the draf

23、t is transmitted to a firms bank for collection, the bank must present the draft to the issuing firm for acceptance before making payment. After the draft has been accepted, the firm must deposit the necessary cash to cover the payments. This allows the firm to keep less cash on hand.McGraw-Hill/Irw

24、inCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.28-18Ethical and Legal Questions The financial managers must always work with collected company cash balances and not with the companys book balance, which reflects checks that have been deposited but not collected. If you are b

25、orrowing the banks money without their knowledge, you are raising serious ethical and legal questions.McGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.28-1928.4 Investing Idle Cash A firm with surplus cash can park it in the money market. Some large firms and ma

26、ny small ones use money market mutual funds. Firms have surplus cash for three reasons: Seasonal or Cyclical Activities Planned Expenditures Different Types of Money Market SecuritiesMcGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.28-20Seasonal Cash DemandsLong

27、-term financingShort-term financingTimeTotal Financing needsJFMAMMarketable securitiesBank loansMcGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.28-2128.5 Summary & Conclusions A firm holds cash to conduct transactions and to compensate banks for the various ser

28、vices they render. The optimal amount of cash for a firm to hold depends on the opportunity cost of holding cash and the uncertainty of future cash inflows and outflows. Two transactions models that provide rough guidelines for determining the optimal cash postion are: The Miller-Orr model The Baumo

29、l modelMcGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.28-2228.5 Summary & Conclusions The firm can make use of a variety of procedures to manage the collection and disbursement of cash in such as way as to speed up the collection of cash and slow down payments

30、. Some methods to speed collections are Lockboxes Concentration banking Wire transfers The financial managers must always work with collected company cash balances and not with the companys book balance. McGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.28-2328.5 Summary & Conclusions If you are borrowing the banks money without their knowledge, you are raising serious ethical and legal questions. The answers to which you probably know by now.