Study Guide

Objective

Students are able to define the basic concepts of liquidity management. They can list the stages of the planning and realization of a liquidity management process. Students know how to evolve a liquidity management plan by means of online service firms. They can work out calculations for liquidity management and assess the importance of them in decision making process also in an international corpotation. They know how to use liquidity ratios and how to interpret them in analyzing the liquidity of a firm. Students know how to plan and draw up a report of liquidity development project and interpret the results to a management group. They can evaluate the significance of comprehensive effective liquidity management for firms and other organizations in the domestic and foreign markets.

Content

- Concepts and basic issues in liquidity management
- Liquidity management as a part of comprehensive financial management
- Significance of liquidity management for firms and other organizations
- Organizing liquidity management and it’,s processes
- Principles of liquidity management: management of accounts payable, credit management, cash management, payment systems, international liquidity management
- Designing and realizing a liquidity development project
- Basics of liquidity management implementation in differing decision-making situations
- A liquidity management expert theme interview

Materials

Lecture materials and other materials informed by the lecturer

Teaching methods

Lectures and exercises

Exam schedules

No exam.

Student workload

Lectures and exercises 16 h
Independent work 38 h

Evaluation scale

1-5

Assessment criteria, satisfactory (1)

Satisfactory (1-2): The student has carried out work and participated as instructed. Students are able to define the basic concepts of liquidity management. They can list the stages of the planning and realizing of a liquidity management process. Students know how to evolve a simple liquidity management plan by means of online service firms. They can work out basic calculations for liquidity management and assess the importance of them in decision making process also in an international corporation. They know how to use liquidity ratios and how to interpret them in analyzing the liquidity of a firm. Students know how to plan and draw up a simple report of liquidity development project. They can evaluate the significance of liquidity management for firms and other organizations in the domestic and foreign markets.

Assessment criteria, good (3)

Good (3-4): The student has carried out work well and participated actively. Students are able to define the basic concepts of liquidity management. They can list the stages of the planning and realizing of a liquidity management process. Students know how to evolve a liquidity management plan by means of online service firms. They can work out many-sided calculations for liquidity management and assess the importance of them in decision making process also in an international corporation. They know how to use liquidity ratios and how to interpret them in analyzing the liquidity of a firm. Students know how to plan and draw up a report of liquidity development project and interpret the results to a management group. They can evaluate the significance of effective liquidity management for firms and other organizations in the domestic and foreign markets.

Assessment criteria, excellent (5)

Excellent (5): The student has carried out work to an excellent standard and participated actively and constructively. Students are able to define the basic concepts of liquidity management accurately. They can list the stages of the planning and realizing of a liquidity management process logically. Students know how to evolve a comprehensive liquidity management plan by means of online service firms. They can work out many-sided calculations for liquidity management and critically assess the importance of them in decision making process also in an international corporation. They know how to use liquidity ratios and how to interpret them critically in analyzing the liquidity of a firm. Students know how to plan and draw up a comprehensive report of liquidity development project and interpret the results to a management group. They can evaluate the significance of comprehensive and effective liquidity management for firms and other organizations in the domestic and foreign markets.

Assessment methods and criteria

Excercises (80 %), self-assessment (20 %)

Qualifications

Financial Management Studies 1 - 2

Further information

Students are also advised to take a course in financial statement analysis and valuation and in investment and financial planning