Archive for May, 2018

postheadericon Smart And Effective Options for the use of Net Working Capital

The net working capital (PSC) of an enterprise is the difference between current assets and current liabilities. It is also called operating, working capital, and in traditional terminology – the company’s own working capital (SOS). Let us have a look on what is net working capital and how it is calculated.

  • Net working capital can be calculated on the balance sheet in two ways: “from below” and “from above”.
  • When calculating from below, the PSC is part of the working capital that is covered by own funds and long-term liabilities.
  • PSC = current assets – short-term liabilities. (9.1)
  • When calculating from above, the PSC is the amount of long-term funds that remains to finance working capital.
  • PSC = permanent capital – non-current assets = (equity + long-term borrowed capital) – non-current assets

By the size of the PSC, you can judge whether the enterprise has enough permanent resources (own funds and long-term borrowings) to finance fixed assets (fixed assets), i.e. whether non-current assets are covered by such stable, reliable sources, which are the company’s own funds and long-term loans received by it.

  • PSC> 0. This means that the enterprise generates more permanent resources than is necessary to finance fixed assets. This surplus can serve to cover other needs of the enterprise. This situation is favorable for the enterprise. It is more reasonable to finance permanent assets with constant liabilities.
  • PSC <0. This means that the company does not have enough resources to finance non-current assets. The situation is unfavorable, but not catastrophic for the enterprise.

If large-scale investments in fixed assets have not yet paid off, then with a good project outlook, we can talk about a temporary shortage of SOS, which eventually disappears: – retained earnings will increase the capital of the enterprise. If the deficit of working capital is observed from year to year, then the situation is more risky.

  • Management of net working capital implies the optimization of its value, structure, values ​​of its components.

With regard to the value of PSC, it is usually reasonable to increase it, as a positive trend. However, there may be exceptions, for example, growth due to bad debtors is unlikely to satisfy the financial manager.


postheadericon Which One Is Better Air Freight Air Cargo

Security (anti-terrorism measures) is one of the spearheads in air freight. In freight transport, all players in the supply chain must comply with certain regulations to make the cargo safe.

With air freight, shippers generally have to deal with all sorts of surcharges on the freight price.

Internationally operating importers and exporters usually have to deal with non-everyday weights or dimensions.

Companies involved in international trade (i.e. imports and exports outside the EU) are faced with the security programs ‘Authorized Economic Operator’ (AEO) in the area of ​​Customs and ‘Known Consignor’ for air freight, if the goods are the air will be transported.

The events of 11 September 2001 in the United States were the reason for the European Union to create a basic level of security for civil aviation that must be maintained by all Member States of the European Union. The new security rules for the European Union are laid down in Regulation (EU) No.185 / 2010.

From April 29, 2013, Truck loads must meet the new Known Consignor (known sender) requirements or they must have their cargo scanned and screened by their logistics service provider. If you want the known sender status you can always call us for questions, help and advice.

The purpose of the new regulation is to protect persons and goods, by preventing that prohibited (arson or explosive) objects (improvised explosive devices) can be brought on board an aircraft. These objects could be used for committing a terrorist attack.

Two methods are used:

Freight screening

In this process, all cargo destined for air transportation will be screened for suspect, prohibited items unless the cargo comes from a ‘recognized agent’, ‘known consignor’ or a ‘permanent consignor’, who has received the security controls. After the screening has taken place, the freight can no longer leave the chain. Unscreened freight is classified as ‘unknown’ and screened as ‘known freight’ and therefore considered safe by a recognized agent.

Supply Chain Security

The measures taken by the shipper and agent are to prevent prohibited articles from being added to identifiable airfreight and that the consignment is transferred safely to a recognized airfreight agent.