Search results for "Cash conversion cycle"
showing 6 items of 6 documents
CO-Evolution Between CCC-Driven Cash Flow Management and Transformation of R&D : Amazon’S Endeavor
2019
Amazon became the world R&D leader in 2017 by rapidly increasing R&D investment. The company’s extremely large amount of R&D funds is the result of an ample free cash flow generated by sophisticated cash conversion cycle (CCC) management. Increased R&D induced business advancement and lean cost structure construction leading to further increase in cash flow which has stimulated interaction between vendors, customers, and Amazon via the Amazon marketplace. Activated interaction accelerated CCC advancement, a subsequent free cash flow increase, and user-driven innovation, thus accelerated the transformation of routine and periodic alteration activities into significant improvement simultaneou…
CO-EVOLUTION BETWEEN CCC-DRIVEN CASH FLOW MANAGEMENT AND TRANSFORMATION OF R&D – AMAZON'S ENDEAVOR
2019
Amazon became the world R&D leader in 2017 by rapidly increasing R&D investment. The company’s extremely large amount of R&D funds is the result of an ample free cash flow generated by sophisticated cash conversion cycle (CCC) management. Increased R&D induced business advancement and lean cost structure construction leading to further increase in cash flow which has stimulated interaction between vendors, customers, and Amazon via the Amazon marketplace. Activated interaction accelerated CCC advancement, a subsequent free cash flow increase, and user-driven innovation, thus accelerated the transformation of routine or periodic alteration activities into significant improvem…
Corporate Investment, Debt and Liquidity Choices in the Light of Financial Constraints and Hedging Needs
2015
We examine firms' simultaneous choice of investment, debt financing and liquidity in a large sample of US corporates between 1980 and 2014. We partition the sample according to the firms' financial constraints and their needs to hedge against future shortfalls in operating income. In contrast to earlier work, our joint estimation approach shows that cash flows affect the corporate decisions of unconstrained firms more strongly than those of constrained firms. Investment-cash flow sensitivities are particularly intense for unconstrained firms with high hedging needs. Investment opportunities (as proxied by Q), however, play a larger role for constrained firms with the effects being strongest…
Logistyka a zarządzanie cyklem kapitału pracującego – rozwiązania stosowane w skali przedsiębiorstwa (Logistics vs. working capital cycle management …
2016
Logistyka, jako koncepcja zarządzania strukturą przepływów towarów i związanych z nimi informacji w przedsiębiorstwie i w łańcuchu dostaw, może w istotny sposób wspomóc optymalizację struktury i poziomu kapitału pracującego. Jego obrazem jest wskaźnik cyklu konwersji gotówki V.D. Richardsa i E.J. Laughlina, a spośród jego składowych logistyka bezpośrednio wpływa na długość cyklu zapasów (F2F), obok cyklu należności (02C) oraz zobowiązań (P2P). Głównymi instrumentami stosowanymi w przedsiębiorstwie w celu skrócenia cyklu F2F są Lean Manufacturing i Just in Time, zorientowane na ujawnianie i redukcję marnotrawstwa w przedsiębiorstwie, czego skutkiem jest zmniejszenie poziomu zapasów. W efekci…
Institutional systems inducing R&D in Amazon- the role of an investor surplus toward stakeholder capitalization
2020
Abstract Amazon demonstrated a conspicuous increase in R&D and became the world's top R&D firm in 2017 with a skyrocketing increase in market capitalization, making it close to being the world's biggest company. Such a remarkable accomplishment can be attributed to Amazon's institutional systems, which orchestrate techno-financing systems that fuse a unique R&D transformation system and a sophisticated financing system centered on the cash conversion cycle (CCC). These institutional systems support and endorse aggressive investment in R&D that incorporates the characteristics of uncertainty, a long lead time, and successive inflows of very large amounts of funding without interruption. Whil…
Fusion of technology management and financing management - Amazon's transformative endeavor by orchestrating techno-financing systems
2020
Amazon became the world R&D leader in 2017 by rapidly increasing R&D investment. Its R&D investment in 2017 was double that of 2015, 5 times that of 2012, and 10 times that of 2011. This rapid increase continued in 2018, and Amazon accomplished a skyrocketing increase in its market capitalization, closing to being the world's biggest company. Such a rapid increase in R&D and subsequent market value has raised questions about how to conduct R&D and secure a large amount of funds needed for high-risk investments. Amazon has provided hypothetical answers to both of these questions. Amazon has been conducting innovative R&D to transform routine or periodic alterations into significant improveme…