Download Cash and Marketable Securities

Doing Business in the Czech Republic and
EU
Dates and Topics
• May 17
• May 19
• May 20
• May 24
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May 25
May 26
May 31
June 2
June 3
June 7
June 9
Czech Republic 2011 – Economic Overview
Doing Business in the Czech Republic - Introduction
Global Company in the Czech Republic and Slovak
Republic-Case of McDonald
Financial Markets in the Czech Republic and their
Regulation in the Context of Global Crisis
Microsoft Business Activities in the Czech Republic
Public Finance/ Health Care Sector in CR
The Financial Aspects of doing Business in the EU 1
The Financial Aspects of doing Business in the EU 2
The Financial Aspects of doing Business in the EU 3
Solar Energy Business in the Central Europe
Prague Stock Exchange
Balance sheet
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ASSETS short term
Cash and Marketable securities
Account receivable
Inventory
ASSETS long term
Gross property, plant &
equipment
– Accumulated depreciation
• Net property, plant &
equipment
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LIABILITIES short term
Account payable
Short term debt
Accruals
LIABILITIES long term
Long term debt
Preferred stock
Equity
Cash and Marketable Securities
• + enough alternative instruments to choose
from.
• - relatively high fee structure
Receivables
• + Approaching level of standardization
expected in modern business environment.
• + Financing of receivables through Pledging
and Factoring available.
• - Cost is relatively high.
• - Relatively large variability around
agreed terms of payments
Inventories
• + Introduction and use of modern methods
of inventory financing (field warehouse
financing, trust receipts, blanket inventory
lien, etc.)
• - Cost of financing relatively high
• - Modern methods of inventories
management (EOQ, etc.) are confined to
large companies only.
Accounts Payables
• + heightened awareness of cost of trade
credit if used as a source of financing.
• - too often misused as a source of
financing with a disregard for buyer/ seller
relationship.
• - Enforcing payment discipline costly and
time consuming
Short term debt
• + Improvement in the variety of short term
borrowing options from banking sector.
Non Banking sector active as a lender to
small and medium businesses, but costs are
high.
• - banks don’t analyze borrower need and
tend to concentrate only on large companies
with good tracking record.
Acquisition of plants and
equipment
• + Large companies use modern capital
budgeting decision tools.
• + Market for leases relatively well
developed
• - Recent government regulation intended to
protect the lessee is slowing down
expansion of market
• - Medium size and small companies use
payback method at best, if at all.
Long term Debt
• + Corporate bond market is beginning to
take off. Large corporation construct their
offerings up to par with developed financial
markets standards.
• - Market is still too thin a for many
companies too expensive.
• + Needs for long term funds serviced
trough bank loans
Equity source of financing
• + IPO’s done on the Prague stock
exchange (Zentiva, ECM, Pegas, AAA
Auto Group) in past four years. Hopefully,
this trend will continue.
• - Unfortunately IPO’s are too few and far
between, even as compared with equity
markets in other “new market economies”
(Poland).