Working capital and Tunka Manin: Difference between pages

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Ghana Tunka Manin (1010 - 1078) was a ruler of the Ghana Empire who reigned from 1062 to 1076 C.E.^[1] Preceded by Bassi, Menin was the last ruler of the Ghana Empire.

Manin successfully held off the Almoravid attacks on the Ghana Empire, and even expanded it farther. Al-Bakri noted that Manin controlled some 200,000 warriors.^[2] However, in 1076, the Almoravids succeeded in destroying the capitol of Kumbi Saleh and therefore taking over rule of the former empire.

Manin is renowned for his involvement with the local communities, and also for his success economically, as he increased trade, especially that of salt, greatly within the empire. Menin is said to have surrounded himself with an air of divinity and magic, which he used to motivate his people to protect him well.^[3] Menin was known to display his wealth by decking himself out in gold, ivory, and other precious materials.^{[citation needed]}

Sources

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[1] [1]

[2] Early African Empires and their Global Connections

[3] West African Kingdoms 500-1590: Social Class and Economy History: Tunka Menin | World Eras

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+Ghana '''Tunka Manin''' (1010 - 1078) was a ruler of the [[Ghana Empire]] who reigned from 1062 to 1076 [[Common Era|C.E.]]<ref>[http://en.wikipedia.org/wiki/List_of_state_leaders_in_1076]</ref> Preceded by [[Bassi (Ghana)|Bassi]], Menin was the last ruler of the Ghana Empire.
-[[Image:2005private_sector_credit.PNG|thumb|right|Domestic credit to private sector in 2005]]
-'''Working capital''', also known as '''net working capital''', is a financial metric which represents [[Accounting liquidity|operating liquidity]] available to a business.  Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital.  It is calculated as [[current assets]] minus [[current liabilities]].  If current assets are less than current liabilities, an entity has a '''working capital deficiency''', also called a '''working capital deficit'''.
+Manin successfully held off the [[Almoravid dynasty|Almoravid]] attacks on the Ghana Empire, and even expanded it farther. [[Al-Bakri]] noted that Manin controlled some 200,000 warriors.<ref>[http://www.globaled.org/nyworld/materials/african2.html Early African Empires and their Global Connections<!-- Bot generated title -->]</ref> However, in 1076, the Almoravids succeeded in destroying the capitol of [[Kumbi Saleh]] and therefore taking over rule of the former empire.
-A company can be endowed with [[assets]] and [[profit]]ability but short of [[liquidity]] if its assets cannot readily be converted into cash.  Positive working capital is required to ensure that a firm is able to continue its operations and that it has sufficient funds to satisfy both maturing short-term debt and upcoming operational expenses. The management of working capital involves managing inventories, accounts receivable and payable and cash.
+Manin is renowned for his involvement with the local communities, and also for his success economically, as he increased trade, especially that of [[salt]], greatly within the empire. Menin is said to have surrounded himself with an air of divinity and magic, which he used to motivate his people to protect him well.<ref>[http://www.bookrags.com/history/west-african-kingdoms-social-class-and-economy/sub9.html West African Kingdoms 500-1590: Social Class and Economy History: Tunka Menin | World Eras<!-- Bot generated title -->]</ref> Menin was known to display his wealth by decking himself out in gold, ivory, and other precious materials.{{Fact|date=October 2007}}
-==Calculation==
-'''Current assets and current liabilities''' include '''three accounts''' which are of special importance. These accounts represent the areas of the business where managers have the most direct impact:
-*[[accounts receivable]] (current asset)
-*[[inventory]] (current assets), and
-*[[accounts payable]] (current liability)
+==Sources==
-The current portion of [[debt]] (payable within 12 months) is critical, because it represents a short-term claim to current assets and is often secured by long term assets. Common types of short-term debt are bank loans and lines of credit.
+{{Reflist}}
+[[Category:1010 births]]
-An increase in working capital indicates that the business has either increased [[current assets]] (that is received cash, or other current assets) or has decreased [[current liabilities]], '''for example''' has paid off some short-term creditors.
+[[Category:1078 deaths]]
+[[Category:Ghana Empire]]
+{{Mali-bio-stub}}
-'''Implications on [[M&A]]:''' The common commercial definition of working capital for the purpose of a working capital adjustment in an M&A transaction (ie for a working capital adjustment mechanism in a sale and purchase agreement) is equal to:
+{{Africa-royal-stub}}
-''Current Assets - Current Liabilities excluding deferred tax assets/liabilities, excess cash, surplus assets and/or deposit balances.''
-Cash balance items often attract a one-for-one purchase price adjustment.
-thanks.
-==Working capital management==<!-- This section is linked from [[List of finance topics]] -->
-Decisions relating to [[working capital]] and short term financing are referred to as ''working capital management''. These involve managing the relationship between a firm's [[Asset#Current assets|short-term assets]] and its [[Current liability|short-term liabilities]]. The goal of Working capital management is to ensure that the firm is able to continue its [[Operations management|operations]] and that it has sufficient cash flow to satisfy both maturing short-term debt and upcoming operational expenses.
-===Decision criteria===
-By definition, working capital management entails short term decisions - generally, relating to the next one year period - which are "reversible". These decisions are therefore not taken on the same basis as Capital Investment Decisions (NPV or related, as above) rather they will be based on cash flows and / or profitability.
-*One measure of cash flow is provided by the [[cash conversion cycle]] - the net number of days from the outlay of cash for [[Material|raw material]] to receiving payment from the customer. As a management tool, this metric makes explicit the inter-relatedness of decisions relating to inventories, accounts receivable and payable, and cash. Because this number effectively corresponds to the time that the firm's cash is tied up in operations and unavailable for other activities, management generally aims at a low net count.
-*In this context, the most useful measure of profitability is [[Return on capital]] (ROC). The result is shown as a percentage, determined by dividing relevant income for the 12 months by capital employed; [[Return on equity]] (ROE) shows this result for the firm's shareholders. Firm value is enhanced when, and if, the return on capital, which results from working capital management, exceeds the [[cost of capital]], which results from capital investment decisions as above. ROC measures are therefore useful as a management tool, in that they link short-term policy with long-term decision making. See [[Economic value added]] (EVA).
-===Management of working capital===
-Guided by the above criteria, management will use a combination of policies and techniques for the management of working capital. These policies aim at managing the [[Asset#Current assets|''current assets'']] (generally [[cash]] and [[cash and cash equivalents|cash equivalents]], [[Inventory|inventories]] and [[debtor]]s) and the short term financing, such that cash flows and returns are acceptable.
-*'''[[Cash management]]'''. Identify the cash balance which allows for the business to meet day to day expenses, but reduces cash holding costs.
-*'''Inventory management'''. Identify the level of inventory which allows for uninterrupted production but reduces the investment in raw materials - and minimizes reordering costs - and hence increases cash flow; see [[Supply chain management]]; [[Just In Time (business)|Just In Time]] (JIT); [[Economic order quantity]] (EOQ); [[Economic production quantity]] (EPQ).
-*'''Debtors management'''. Identify the appropriate [[Credit (finance)|credit policy]], i.e. credit terms which will attract customers, such that any impact on cash flows and the cash conversion cycle will be offset by increased revenue and hence Return on Capital (or ''[[vice versa]]''); see [[Discounts and allowances]].
-*'''Short term financing'''. Identify the appropriate source of financing, given the cash conversion cycle: the inventory is ideally financed by credit granted by the supplier; however, it may be necessary to utilize a bank [[loan]] (or overdraft), or to "convert debtors to cash" through "[[Factoring (trade)|factoring]]".
-==See also==
-*[[Cash conversion cycle]]
-*[[Corporate_finance#Working_capital_management|Working capital management]]
-*[[Sustainable growth rate]]
-[[Category:Financial accounting]]
-[[de:Betriebskapital]]
-[[es:Fondo de maniobra]]
-[[fr:Fonds de roulement]]
-[[it:Capitale circolante netto]]
-[[he:הון חוזר]]
-[[nl:Werkkapitaal]]
-[[ja:運転資本]]
-[[ru:Оборотные средства]]
-[[sv:Rörelsekapital]]
-[[uk:Оборотний капітал]]
-[[zh:營運資金]]