A high-level introduction to Corporate Treasury Management

Explore the Genesis Pasta venture and how a corporate treasurer could manage wheat price fluctuations, foreign currency risk, and upfront financing as she plans fresh and branded pasta in Japan.

The lecture explains how treasury managers assess risks and maintain cash flow. It covers working capital, funding sources, risk mitigation, and compliance to support daily operations and long term goals.

Explore how treasury analyzes business models and cash flow to manage working capital, funding, and risk across buying, assets, operations, sourcing, production, logistics, and collections.

Explore how a corporate treasury evaluates and hedges commodity, exchange, and fuel risks across manufacturing, sourcing, and selling cycles for Jenny's pasta, including funding decisions and hedging strategies.

Explain equity and debt sources, their benefits, risks, and ownership implications. Compare a mix of funding options and use the wacc to decide the optimal capital structure.

Compare buying, leasing, and mortgage options for land and equipment, weighing upfront capital, control, and future value. Assess long-term versus short-term leases, monthly payouts, and profit considerations.

Sara and teammates evaluate payment modes for assets and raw materials, weighing pros and cons of electronic transfer, cash, credit cards, digital wallets, checks, and real-time payments for treasury management.

Sarah demonstrates mitigating input price risks by building best, worst, and most likely scenarios from sales and costs, and considers hedging, supplier strategies, price caps, and currency of payment.

Learn how to manage inflow of funds for Jenny's Pasta by selecting payment terms—credit, cash on delivery, advance payment, and pre-bookings—considering market dynamics and cash collection efficiency.

Link treasury management with corporate strategy to track metrics of business health and align finance performance with the goal of maximizing shareholder value, through dividends or higher valuation.

Explore key financial metrics like ROIC, nopat, invested capital, WAC, and ROCE to assess profitability and capital efficiency, and discover how treasury optimizes capital structure and returns on invested capital.

Learn how ROIC, invested capital turnover, and a margin ratio drive shareholder value; routes include ROIC greater than WACC investment, high turnover, margin gains, low WACC, and pruning value-destroying projects.

Explore company valuation methods including book value, market capitalization, enterprise value, growing perpetuity, and discounted cash flow, and understand how cash flows and discount rates drive value.

Asahi illustrates the growing perpetuity valuation for Jenny's pasta co, using $500,000 invested capital, roic 12%, wacc 8%, and 5% growth to show higher roic or growth raises value.

Describe the treasurer's daily tasks, updating forecasts, revisiting assumptions, maintaining working capital, guiding costs and exchange-rate inputs, and updating investors while building contingency plans.

Discover how a multinational treasury plans manufacturing location and currency strategies for expansion. Learn about asset financing, local currency management, and routing profits back to the parent.

Explore how the treasury function supports business cash flow, raising capital, deploying funds at least cost, and de-risking through instruments while tracking ROIC and WASC across multi-country growth.