System and method for measuring and utilizing pooling analytics
First Claim
1. A computer-implemented method for determining a benefit of pooling separate cash accounts into a single pooled account, the method comprising:
- determining separate minimum cash balances required in the separate cash accounts;
aggregating the separate minimum cash balances into an aggregated minimum cash balance;
determining by computer a pooled minimum cash balance required in the single pooled account; and
determining a difference between the aggregated minimum cash balance and the pooled minimum cash balance, wherein the difference is a benefit of pooling.
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Accused Products
Abstract
A system and method for quantifying the working capital benefit of pooling a number of separate cash accounts. The average (mean) cash balance of the pooled account is determined to be the sum of the means of each of the individual accounts. Similarly, the standard deviation of the pooled account is determined to be the square root of the sum of the squares of the standard deviations of the individual accounts. Accordingly, the minimum cash level of the pooled account is 2.3 times the square root of the sum of the squares of the standard deviations of the individual accounts. In order to determine the benefit of pooling, the present invention determines the difference between the minimum aggregate cash required by the separate companies and the minimum cash required in the pooled account. If pooling is to be beneficial, from a working capital perspective, the minimum cash required in the pooled account will be significantly less than the aggregate cash required by the separate companies.
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Citations
16 Claims
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1. A computer-implemented method for determining a benefit of pooling separate cash accounts into a single pooled account, the method comprising:
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determining separate minimum cash balances required in the separate cash accounts; aggregating the separate minimum cash balances into an aggregated minimum cash balance; determining by computer a pooled minimum cash balance required in the single pooled account; and determining a difference between the aggregated minimum cash balance and the pooled minimum cash balance, wherein the difference is a benefit of pooling. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8)
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9. A system for determining a benefit of pooling separate cash accounts into a single pooled account, the system comprising:
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a communication network; at least one user terminal coupled to the communication network; and an information processor coupled to the communication network, wherein the information processor is operable to; determine separate minimum cash balances required in the separate cash accounts, aggregate the separate minimum cash balances into an aggregated minimum cash balance, determine a pooled minimum cash balance required in the single pooled account, and determine a difference between the aggregated minimum cash balance and the pooled minimum cash balance, wherein the difference is a benefit of pooling. - View Dependent Claims (10, 11, 12, 13, 14, 15, 16)
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Specification