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  • Summer Training Presentation: Working Capital Management

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    The document is a presentation about working capital management in healthcare organizations. It discusses (1) defining the working capital cycle as obtaining cash, purchasing resources and paying bills, providing services, and billing and collection; (2) financing short-term needs with short-term debt and long-term needs with long-term financing; and (3) comparing aggressive and conservative asset mix strategies, with aggressive investing more in fixed assets and having lower liquidity but higher risk and returns.

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    Summer Training Presentation

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    The document is a presentation about working capital management in healthcare organizations. It discusses (1) defining the working capital cycle as obtaining cash, purchasing resources and paying bills, providing services, and billing and collection; (2) financing short-term needs with short-term debt and long-term needs with long-term financing; and (3) comparing aggressive and conservative asset mix strategies, with aggressive investing more in fixed assets and having lower liquidity but higher risk and returns.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    12 views9 pages

    Summer Training Presentation: Working Capital Management

    Uploaded by

    rohitresearcher
    The document is a presentation about working capital management in healthcare organizations. It discusses (1) defining the working capital cycle as obtaining cash, purchasing resources and paying bills, providing services, and billing and collection; (2) financing short-term needs with short-term debt and long-term needs with long-term financing; and (3) comparing aggressive and conservative asset mix strategies, with aggressive investing more in fixed assets and having lower liquidity but higher risk and returns.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 9

    Summer Training

    Presentation
    Working Capital Management

    Rohit Kumar Thapa


    Objectives

    Understanding about working capital management in


    the relation to healthcare organization.
    The Working Capital Cycle
    2) Purchase Resources
    & Pay Bills

    1)Obtain Cash

    3) Provide Services

    4)Billing &
    Collection

    Time Importance- Cash owed by providing services should be


    received on time for the payment to supplier/salaries.
    Short Term and Long Term Borrowing
    Finance short-term working capital needs with short-
    term debt.
    Finance long-term working capital needs with long-
    term financing.
    When organisation has fluctuating needs for working
    capital, employ a mixed strategy.
    Comparison of Short and Long Term
    Borrowing
    Short-term Long-term

    Interest Rate Lower Higher

    Interest Cost Lower Higher

    Profit Higher Lower

    Volatility Risks Higher Fixed


    Assets Mix Strategy

    Assets Mix Strategy

    Aggressive App roach Conservative App roac h

    Investing More in Fixed Assets Lower Liquidity Higher Liquidity Less Investment in Fixed Assets
    Comparison of aggressive and Conservative
    strategy
    Aggressive Strategy Conservative Strategy

    Goal Maximum Returns Minimum Risk

    Liquidity Low High

    Risk High Low

    Return High Low


    Billing collection and Disbursement
    Billi Colle Tran rseme Disbu
    ng ction sit nt
    ●Patient ●Payement
    ●Payeme
    receives
    service nt sent
    processed
    ●Payement
    Funds
    ●

    ●Bill

    compiled
    ●Payeme deposited
    ●Funds
    distri
    nt buted
    & available
    delivered received for use
    Thank you

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