The primary aim of working capital management is to maximise company value while maintaining ready access to funds required for day-to-day operations and payments to creditors.
Learning objectives:
- Use financial ratio analysis to evaluate the effectiveness of working capital use.
- Determine the working capital cycle.
- Explain relations between working capital, liquidity, and short-term funding needs.
- Evaluate alternative courses of action and provide information to support decisions on working capital.
- Apply different approaches to working capital management: profit-based vs. value-based.
- Determine the risks and opportunities related to working capital management.
Who should attend?
CFOs, finance business partners, management accountants, financial / cost controllers, planning and analysis specialists, internal auditors, accountants.
Training Agenda
Components of working capital:
- Receivables collection period.
- Payables payment period.
- Inventory days.
- Operating cycle.
- Cash conversion / working capital cycle.
- Liquidity ratios.
Profit-based working capital management:
- Relationship between working capital and profitability.
- Case study.
Value-based working capital management:
- Relationship between working capital and shareholder value.
- Working capital changes and impact on discounted future free cash flow (DCF).
- Case study.
Different techniques used to manage working capital:
- Strategies of working capital management: aggressive, moderate, and conservative.
- Methods of inventory management: ABC inventory matrix, just-in-time (JIT) system, the economic order quantity (EOQ) model.
- Methods of trade receivables management: credit control procedures, debt factoring, and invoice discounting.
- Methods of trade payables management. Effective cost of trade credit.
- Methods of cash management.
- Risks of overtrading.
- Risks and opportunities related to working capital management.
Dates:
12 & 19 June 2025 (10:00 - 14:15 EEST)
Format:
Live online
Language:
English
Price:
EUR 370 (excl. VAT)
For more details please contact us.
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