Bảng phân tích chi tiết ưu, nhược điểm trong ngắn hạn và dàihạn của Installment và Amortization môn Sáp nhập, mua lại và tái cấu trúc doanh nghiệp | Trường Đại học Kinh tế Thành phố Hồ Chí Minh

(1)
Bảng phân tích chi tiết ưu, nhược điểm trong ngắn hạn và dài hạn của Installment và Amortization Method Short-term Long-term Installment -
Advantages: Fixed and -
Advantages: Predictable in
lower monthly payments: Fixed the long term: Fixed schedule
installments make it easier to makes it easier to budget for manage short-term finances. future expenses. - Disadvantages: High - Disadvantages: Higher
total cost: Slow reduction of
interest share in the initial period: Slow reduction of
principal leads to higher interest
principal balance results in more payments over the loan period. interest over time. Amortization - Advantages: Faster -
Advantages: Lower overall
principal reduction: Interest
cost: Rapid reduction of principal
decreases over time, reducing balance leads to significant
overall interest costs from the savings on interest payments. start. -
Disadvantages: Declining - Disadvantages: Higher
payments: Monthly payments
initial payments: Heavier decrease over time, which can financial burden in the early make financial planning less
months due to the combination of predictable. fixed principal and interest. Installment:
- Suitable for individuals with stable but limited income who
prefer fixed and predictable payments.
- Ideal for large, long-term loans where affordability in the short term is a priority. Amortization:
- Suitable for individuals with higher short-term financial
capacity, willing to pay more initially to save on interest costs.
- Ideal for short or medium-term loans, helping to optimize total
borrowing costs in a shorter timeframe.
(2) Pros and Cons of the Add-On Method Advantages Disadvantages Short term - Simple and easy to
- Higher interest costs compared to other
understand due to fixedmethods like Amortization. monthly payments.
- Not beneficial for early repayment as
- Suitable for small loansinterest is calculated on the full initial or short-term periods. principal. Long term - Easy to manage for
- Total interest costs are significantly
larger loans withouthigher, especially for long-term loans. complex calculations. -
Does not encourage early repayment as interest remains fixed. When to choose:
- Ideal for small to medium-term loans with fixed monthly payments for easy financial planning.
- When simplicity and predictability matter more than minimizing total interest costs. When not to choose:
- If your goal is to minimize total borrowing costs, especially for large or long-term loans. Suitable for - Small, short-term loan
- Borrowers who prioritize stability in monthly payments over total cost efficiency Not suitable for
- Large, long-term loans or situations where reducing total borrowing costs is crucial. (3)
Cash flow cycle (slide p.g 8 chap3 part2)
Cash Flow Cycle refers to the process by which a company manages its
cash inflows and outflows over time. It represents the entire sequence of
events through which a business handles its money, from receiving
payments from customers to paying suppliers and other operational expenses.
The Cash Flow Cycle consists of several key stages:
1. Inflow (Customer Payments): The company receives payments
from customers for products or services sold.
2. Outflow (Payments to Suppliers and Employees): The company
pays its suppliers for raw materials and operational expenses, including employee salaries.
3. Inventory and Production: The business needs to maintain
inventory and convert raw materials into finished goods.
4. Sales and Receivables: After producing goods, the company sells
them to customers and receives payment for the products.
5. Management of Receivables and Payables: The company
monitors its receivables and payables to ensure that cash is flowing
smoothly without interruptions.
The Cash Flow Cycle is crucial for business success. Proper
management ensures that the business has enough liquidity to continue
operations, pay bills, and invest in growth. An efficient cash flow cycle
helps reduce reliance on external financing, lower costs, and improve profitability. (4)
Cash conversion cycle (slide p.g 9 chap3 part2)
The Cash Conversion Cycle
(CCC) measures the efficiency of cash
flow management in a business. It is the time taken to convert
investments in inventory and receivables into cash. CCC is calculated as:
CCC = Inventory Period + Delivery period + Account receivable – Accounts payable
CCC = tgian sản xuất + tgian giao hàng + tgian phải thu – tgian phải trả
Key Benefits (when managing CCC effectively)
1. Short-Term: Improves liquidity and reduces dependence on external funding.
2. Long-Term: Lowers capital costs, enhances profitability, and
increases operational resilience. Business Application:
A shorter CCC ensures faster cash flow and efficient resource
utilization, which is crucial for sustainable growth. Managing CCC
effectively allows businesses to balance liquidity, profitability, and competitiveness. (5)
Positive CCC and Negative CCC – What products should the bank provide for? Positive CCC
Means the business takes time to convert inventory and receivables
into cash. This situation indicates that the business is financing its
operations and production while waiting for customers to pay.
Banks would recommend short-term credit products (working
capital loans, business credit cards) to help the business maintain liquidity and cover costs. Negative CCC
Means the business collects cash from customers faster than it
needs to pay suppliers and other expenses. This indicates that the
business has good cash flow management and does not rely heavily on borrowing.
Banks would recommend savings and investment products
(savings accounts, certificates of deposit, financial investments)
because the business has enough cash flow to invest and does not require loans.
(6) Types of Working Capital Loan – Term loan and Line of Credit Types Advantages Disadvantages Best used for Term loan Fixed
amount, Less flexibility, Large investments or
(slide p.g 12 predictable payments, potential collateral expansion that requires
chap3 part2) low interest rates required set funding Line of
Flexible borrowing, Higher interest Fluctuating cash flow, Credit
only pay interest onrates, can lead tocovering short-term (slide p.g 14 borrowed amount
high debt ifworking capital needs chap3 part2) mismanaged