El ciclo del capital de trabajo

Working capital. Capital de trabajo.

Presentado a:

Pedro Javier Barriga

Diana Carolina García Gómez.

ID: 672801

Corporación Universitaria Minuto de Dios.

 Análisis Financiero

Administración de Empresas – VI Semestre.

Funza, Cundinamarca 28-08-2020.

Teaching of working capital.

Initially this activity has a great focus both on a professional level and on a personal level, I learned the importance of having a stable flow of money for possible circumstances that may arise, no one is exempted from unexpected expenses both in the company and in the home, for example in this health crisis that the country is going through, in my financial plan there were many imbalances in the cash cycle, I was forced to reduce expenses and implement strategies for new money inflows, I had accounts payable to be deferred for a longer time, bearing in mind that interest is not going to decrease, but it is a risk that I must face in order to achieve short-term solvency, while the employment situation improves and income begins to grow.

The working capital cycle is important for the solvency and stability of people and companies, in these classes I learned that when I have my company and sell products or services on credit, I must do it within 30 days and when I buy on credit I must ask for it to 60 days, to have an adequate payment term and generate an active cash flow to support payments and acquire raw materials.

Regarding the issue of inventory rotation, it seems important to emphasize that the company should not forget this part of the capital cycle process, understanding that inventories are easily converted into cash, that is, they are current assets and that if at some point in my future company, I observe that there are products that are not rotating efficiently, I must implement strategies to be able to generate cash, an example would be to contact my friends or family and offer them the merchandise, understanding that it will not generate the same profit, but I will obtain income and cash to develop other activities within the company.

Regarding the budget, the example is clear to me for my personal life, I have always managed my finances with a control of entries and exits, I do not generate expenses that I cannot cover and I do not like to get into debt in material things that are not of great importance.

  At the savings level, my income should generate a resource for investment, I like the CDT because I can save it in flexible times and I know that the disbursements will be made on agreed dates, so that I have a better organization of the money, when I made my first investment In CDT, a year I was able to get my first loan for the construction of a house and I gave that home to my parents, and the great lesson is that saving and investing are strategies that can generate many joys and increase our capital, whether in cash or plant and equipment.

Currently my investment method is in real estate, my cash flow, I decrease, but finance my expenses and balance my assets and liabilities, managing to continue with this investment, however the savings quota that I had a few months ago had a decrease by the crisis that my country is going through and that also harmed the company where I currently work, but these types of setbacks do not prevent the accounts payable from being financed and being able to stay afloat.

In conclusion, managing to maintain a solvent company or household requires good management of the money capital, it is necessary to know the shares of each component of the capital cycle, to identify the shortcomings and possible solutions.

...