I rate! Does Visa, Inc have a flexible or restrictive policy for size of investments in current assets and financing of...
I rate!
Does Visa, Inc have a flexible or restrictive policy for size of investments in current assets and financing of current assets? Why?
Homework Answers
After reading out 2017 and 2018 annual reports of Visa Inc in my view they have a restricted policy for their handling of current assets. Reason for my view are:
- that their cash and cash equivalent rose to $ 9874 million in 2017 from $ 5619 million from 2016 whereas in 2018 it stood at $ 8162 million.
- While their short term securities investment remained at the constant level of $ 3500 million around in all the three years
- This shows that they do not easily park their excess money in the short term ventures to earn interest. If they had a flexible policy to handle extra cash which constitutes around 50% of its total assets, then it could have been considered that Visa Inc follows flexible policy.
Hope this helps, please rate if it does, else let know in comments. Thanks
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I rate! Does Visa, Inc have a flexible or restrictive policy for size of investments in current assets and financing of...
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