Finance - 3312 Words

Impact of Inventory management on the profitability of Square Pharmaceuticals Ltd. 1. Introduction: Inventory is one of the factors that can control to improve business profitability. The way source and manage inventory can impact the different profit levels of income statement. Ignorance of how to use inventory advantage prevents you from maximizing operational efficiency. 2.1. Overview of the Company: SQUARE today is a name not only known in the Pharmaceutical world, it is today a synonym of quality- be it consumer product, toiletries, health products, textiles, agro vet products, information technology and few more. All these were possible due to his innovative ideas, tireless efforts, perseverance and dedication with†¦show more content†¦b. Economic Order Quantity (EOQ) Model: Economic order Quantity model refers the inventory management system which helps to determine the optimum order quantity which minimizes its order and carrying cost. Here we show how much quantity they should buy to minimize their cost. 3. Literature Review: Inventory management is the process of efficiently overseeing the constant flow of units into and out of an existing inventory. This process usually involves controlling the transfer in of units in order to prevent the inventory from becoming too high, or dwindling to levels that could put the operation of the company into jeopardy. Competent inventory management also seeks to control the costs associated with the inventory, both from the perspective of the total value of the goods included and the tax burden generated by the cumulative value of the inventory. The objective of inventory management is to provide uninterrupted production, sales, and/or customer-service levels at the minimum cost. Since for many companies inventory is the largest item in the current assets category, inventory problems can and do contribute to losses or even business failures. It is also called inventory control. http://www.businessdictionary.com/definition/inventory-management.html#ixzz2yCVn8Kmh http://www.barcodesinc.com/articles/what-is-inventory-management.htm 4. Current Scenario: 5.6. Managers View: According to the managers view,Show MoreRelatedFinance1352 Words   |  6 Pagesfinancial manager differ from the traditional financial manager? Does the modern financial managers role differ for the large diversified firm and the small to medium size firm? The traditional financial manager was generally involved in the regular finance activities, e.g., banking operations, record keeping, management of the cash flow on a regular basis, and informing the funds requirements to the top management, etc. But, the role of financial manager has been enhanced in the todays environment;Read MoreFinance1074 Words   |  5 PagesCORPORATE FINANCE COURSE CORPORATE FINANCE 2.1 Working Capital Management Sept. 2014 Ir Frank W. van den Berg mba Vrije Universiteit, Amsterdam ALYX Financial Consultancy bv, Aerdenhout FWvdB/2014 1 OUTLINE CORPORATE FINANCE FWvdB/2014 †¢Ã¢â‚¬ ¯ Basics Guiding principles †¢Ã¢â‚¬ ¯ Time value of money + Capital Budgeting †¢Ã¢â‚¬ ¯ Valuation of CF + Bonds †¢Ã¢â‚¬ ¯ Valuation of shares (+ co.’s) †¢Ã¢â‚¬ ¯ Financial Analysis (Ratios) †¢Ã¢â‚¬ ¯ Financial Planning (EFN) †¢Ã¢â‚¬ ¯ à  Ã¯Æ'   Working Cap. Mgt. (A/R,Read MoreThe Finance1054 Words   |  5 Pagesrequires intentional short-term and long-term planning. More importantly, in order for capital management to be deemed successful, it is required that all members of an organization are on board. â€Å"Capital budgeting is not only important to people in finance or accounting, it is essential to people throughout the business organization†lt; /spangt; (Block, Hirt, amp; Danielsen, 2011). As the duration of the investment period increases, and the size of investment increases, the residual risk also increasesRead MoreEquity Finance And Debt Finance823 Words   |  4 PagesStockholders are those entities who provide a company with the risk capital such as preference share owners and ordinary share owners (Freeman and Reed, 1983). Generally, stockholderis one of long-term finance providers with the aim to maximize their wealth.According toBrickleyet al. (1985), long-term finance provi ders are more likely to focus on the matter whether the financial structure in the company is sound or not and the durability of profitabilityrather than temporary profits that a potentiallyRead MoreFinance, Economics, And Finance Essay1245 Words   |  5 Pagesalso studied business, management, economics, and finance. These courses impressed upon me the importance of the financial sector in the economy. Finance professionals have the unique responsibility of managing assets and analyzing risks to ensure the future success of a company or organization. It is difficult to overstate the importance of this role, as the financial crisis of 2009 showed. It is due to my understanding of the importance of finance and investment, coupled with my longstanding interestRead MoreFinance : Finance A Carry Trade1144 Words   |  5 PagesIn finance a carry trade is a strategy that consists of borrowing at a low interest rate currency to fund investment in higher yielding currencies. (Moffett) Th e country in which the investors borrow from is called the funding country and the country where the investment occurs is called the target country. (4) Carry trade is also termed currency carry trade; this strategy is speculative in that the currency risk is present and not managed or hedged. (Moffett) Although there are several complicatedRead MoreFinance, Banking And Finance Industry2170 Words   |  9 Pagescomplete your transaction and move on with your day. The last thing on your mind is how that transaction is taking place. You don’t care what happens behind the scenes as long as your money is where it needs to be and is safe. As the banking and finance industry has transformed, so has the process of how your money is handled. To accompany those changes, regulators and lawmakers create laws designed to protect consumers, banks, and the economy as a whole. As you will learn, the history of the bankingRead MoreFinance : Finance A Carry Trade Essay1144 Words   |  5 Pages In finance a carry trade is a strategy that consists of borrowing at a low interest rate currency to fund investment in higher yielding currencies. (Moffett) The country in which the investors borrow from is called the funding country and the country where the investment occurs is called the target country. (4) Carry trade is also termed currency carry trade; this strategy is speculative in that the currency risk is present and not managed or hedged. (Moffett) Although there are several complicatedRead MoreFinance998 Words   |  4 PagesPlant Improvements Total Investments: total investment in plant and equipment brought forward from the Production spreadsheet. Sales of Plant and Equipment : total sales of plant and equipment brought foraad from the Production spreadsheet. Common Stock * Shares Outstanding: The number of shares of common stock in the hands of shareholders. Reflect any issue/ retire stock transaction at the beginning of this year * Price Per Share: stock price as of yesterday’s close. Stock will be issuedRead MoreInternal Sources Of Finance And Finance Essay2349 Words   |  10 PagesInternal sources of finance: Internal sources of finance are funds that arise from within the business such as profits as they can be retained to grow the finance and selling assets. Retained profit Retained profit is the money kept in the company after paying dividends. It is used to reinvest in the business or to pay debt. It comes by a business after it makes profit and is kept separate to use in other ways such as expanding the business by developing new buildings or certain areas, buying new