Acme Inc.的困境：財務管理之最佳實務應用

Abstract

The present paper is based on a real life case, although some details have been hidden or modified to ensure proper confidentiality. The motivation behind this thesis is to exemplify financial management best practices and how these best practices are actually implemented and used in the real world. First a qualitative overview is given to put the company into context, then a thorough financial analysis is undertaken to discover the underlying financial problems the company is facing. Based on the analysis, recommendations are made to address the specific problems. Some of the main topics addressed are working capital management, capital budgeting best practices, capital raising and hedging (foreign exchange and interest rates).\r\n\r\nKeywords: Working capital, Capital budgeting, Foreign exchange hedging, Interest rate hedging.

1. Qualitative Analysis 1\r\n1.1. Overview of the Company 1\r\n1.2. Target Market 2\r\n1.3. Organizational Structure and Shareholder Composition 2\r\n1.4. Management Team 3\r\n1.5. Industry Overview 3\r\n1.6. Industry Analysis – Porter Five Forces Framework 4\r\n1.6.1. Threat of New Entrants 4\r\n1.6.2. Substitute Products 5\r\n1.6.3. Intensity of Competition 6\r\n1.6.4. Supplier Bargaining Power 6\r\n1.6.5. Buyer Bargaining Power 7\r\n1.7. Porter Strategy 7\r\n1.8. SWOT Analysis 9\r\n1.8.1. Strengths 9\r\n1.8.2. Weaknesses 9\r\n1.8.3. Opportunities 10\r\n1.8.4. Threats 10\r\n1.8.5. Conclusion SWOT Analysis 10\r\n2. Quantitative Analysis 12\r\n2.1. Quality of the Information 12\r\n2.2. Cash Flow from Operations 12\r\n2.2.1. Sales Analysis 12\r\n2.2.2. Profitability Analysis 13\r\n2.2.3. Cash Flow Cycle Analysis 15\r\n2.2.4. Cash Flow from Operations 17\r\n2.3. Cash Flow from Investment 18\r\n2.3.1. Change in Property Plant and Equipment. 18\r\n2.3.2. Change Accounts Payable to Affiliates. 19\r\n2.3.3. Net Investments 19\r\n2.3.4. Conclusion Cash Flow from Investments 19\r\n2.4. Cash Flow from Financing 19\r\n2.4.1. Increase in Short Term Lending 20\r\n2.4.2. Increase in Long Term Lending 20\r\n2.4.3. Changes Due to Fluctuation in Foreign Currency 21\r\n2.4.4. Net Financing Activities 21\r\n2.4.5. Leverage 22\r\n2.4.6. Net Cash Flow for the Next Year 24\r\n2.5. Problem Identification 25\r\n2.5.1. Planning for Growth 25\r\n2.5.2. Raising Capital 26\r\n2.5.3. Hedging Risks 27\r\n3. Recommendation 28\r\n3.1. Planning for Growth 28\r\n3.1.1. Planning for Growth: Sales 29\r\n3.1.2. Planning for Growth: Investments 33\r\n3.2. Raising Funds 34\r\n3.2.1. Does Debt Policy Matter? How Much Should a Corporation Borrow? The Cost of Financial Distress. 35\r\n3.2.2. Leasing vs. Borrowing. 36\r\n3.3. Hedging Risks 39\r\n4. Conclusions 43\r\n5. What Happened to Acme Inc.? 45\r\nReferences 46