The Management of Working Capital in an International Company

Douglas Wood and James Byrne
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Douglas Wood: Manchester Business School
James Byrne: Manchester Business School

Chapter 5 in International Business Finance, 1981, pp 112-141 from Palgrave Macmillan

Abstract: Abstract The underlying objective of a cash management programme is to ensure that the pattern of cash balance employed by a given company is justifiable in terms of overall profitability. In effect, this simply means that if cash-using activities are charged for the use of that cash at a rate which approximates to the current cost of capital to the company (including exchange cover) and activities which are (or could be) cash-generating are credited at a similar rate for their provision of cash, no greater profitability could be secured by rearranging cash balances.

Keywords: Cash Flow; Balance Sheet; Transfer Price; Working Capital; Cash Balance (search for similar items in EconPapers)
Date: 1981
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DOI: 10.1007/978-1-349-03120-7_5

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