This course is ideal for professionals who want to learn how
to manage their working capital more effectively. By taking this course,
participants will gain a comprehensive understanding of the principles and
practices of working capital management, practical tools and techniques to
optimize cash flow, improve liquidity and financial health, manage risks, and
make informed financial decisions. Ultimately, the course provides essential
knowledge and skills that can be applied in real-world business settings,
making it a valuable asset for anyone seeking to improve their working capital
management capabilities.
Explain the link between cash and working capital and the importance of managing working capital effectively.
Describe the components of the cash conversion cycle (CCC) and how changes to the cash flow timeline can impact working capital management.
Evaluate the impact of changes to the CCC on working capital management and external financing requirements.
Compare and contrast current asset investment and financing strategies and summarize the benefits and drawbacks of each.
Evaluate the trade credit policies and forms of credit extension available to a firm and develop a plan for managing accounts receivable. (Creating)
Analyze the benefits and costs of inventory and apply inventory management techniques to optimize inventory levels.
Evaluate the different types of accounts payable and disbursement systems and recommend a system that is appropriate for a given firm.
Explain the international working capital management tools available to a firm
Apply fundamental working capital metrics to assess a firm's liquidity and financial health.
Operating Cash Flows
Cash Flow Timeline
Float
Days Inventory (DI)
Days Receivables (DR)
Days Payables (DP)
Understanding the CCC
Evaluating the Impact of Changes to the Cash Flow Timeline
Changes in Current Assets
Changes in Current Liabilities
External Financing Requirements
Current Asset Investment Strategies
Current Asset Financing Strategies
Summary of Investing and Financing Strategies
Relationship between Treasury and Credit Management
Trade Credit Policies
Forms of Credit Extension
A/R Management
Cash Application
Considerations Pertaining to Terms of Sale
Financing A/R
A/R Balance Pattern
Benefits and Costs of Inventory
Types of Inventory
Inventory Management Techniques
Inventory Financing Alternatives
Disbursement System Considerations
Types of A/P and Disbursement Systems
Multicurrency Accounts
Netting
Leading and Lagging
Re-invoicing
Internal Factoring
In-House Banking
Export Financing
Net Working Capital
Current Ratio
Quick Ratio
Days Cash Held
Summary of the Fundamental Working Capital Metrics
Days Inventory (DI)
Days Receivables (DR)
Days Payables (DP)
Calculation of the CCC
Cash Turnover
Annualized Cost to a Buyer of Forgoing a Trade Credit Discount
Financial Impact to a Seller of Offering a Trade Credit Discount
Accounts Receivable (A/R) Monitoring
Days Sales Outstanding (DSO)
A/R Aging Schedule
Financial Analysts.=Treasury Managers.=Cash Managers.=Controllers.=Chief Financial Officers (CFOs).=Accountants.=Budget Analysts.=Risk Managers.=Investment Bankers.=Commercial Bankers
