Gazprom and its partners, including Shell Oil, were recently blocked from laying the Nord Stream II pipeline basically right along side the existing pipe after Poland’s anti-monopoly board cancelled the deal. Poland said the European how to secure a small business loan companies involved would have too big a market share in Poland, which has spent hundreds of millions investing in liquefied natural gas as a Gazprom alternative. The only guys whose alternatives are working are the guys at Gazprom. Ukraine used to be their preferred way into Europe. But a bitter divorce between the two former Soviet buddies began in February 2014 and hasn’t ended since. Ukraine has been buying gas from other countries even as gas production at home barely increases by 1% year over year. The country is still dependent on Russian gas, and its state owned Naftogaz makes money from Russian gas transit fees into Europe. But with the two sides locked in political turmoil, Gazprom’s alternative to use Nord Stream has left Naftogaz on the hook. Ukraine will have to find other sources eventually if it is to remain a big participant in European gas markets.
Current.ssets are the most liquid of your assets, meaning they are cash or can be quickly converted to cash. A company can be endowed with assets and profitability but short of liquidity if its assets cannot readily be converted into cash. 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. By definition, working capital management entails short-term decisions—generally, relating to the next one-year period—which are “reversible”. Therefore, companies strive to reduce their working capital cycle by collecting receivables quicker or sometimes stretching accounts payable. Working capital is calculated as current assets minus current liabilities . 1 If current assets are less than current liabilities, an entity has a working capital deficiency, also called a working capital deficit.
The management of working capital involves managing inventories, accounts receivable and payable, and cash. accounts payable current liability 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. See economic value added EGA. Since cash can be raised so quickly, there is no need to have a large amount of working capital available. Therefore, companies strive to reduce their working capital cycle by collecting receivables quicker or sometimes stretching accounts payable. YES NO 5 people found this helpful. “ The working capital of my business is in the negative because we spent so much of our revenue on assets that cannot be liquidated so we cannot access the money that we need to expand. ” Was this Helpful? The working capital cycle FCC is the amount of time it takes to turn the net current assets and current liabilities into cash. Understand what has caused problems for proctor & Gamble over the past few years and what the company is doing about it.