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Finance Function – Treasury

Forums › CIMA Forums › Finance Function – Treasury

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by P2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • September 5, 2017 at 8:18 am #405580
    edit
    Member
    • Topics: 25
    • Replies: 21
    • ☆

    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.

    It says:
    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?

    September 5, 2017 at 8:08 pm #405815
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7212
    • ☆☆☆☆☆

    Hi,

    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.

    Thanks

    Chrid

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