Good Morning Sir,
In my MCS book I had to analyse the financial performance of a company. There is a sentence in the suggested answer that I cannot interpret correctly.
The Available for Sale investment increased in value by $10 (from 140 to 150) indicating a strong treasury management.
Why would such an increase indicate strong Treasury function? I understand that the treasury is about raising finances, controlling finance resources, working capital. But why such a increase actually mean a strong treasury management?
I’ve not got the question to hand but given we’ve made a return of 7.14% (10/140) then that would appear to suggest that the funds available to the treasury department have been used well.
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