Working Capital Optimisation

Principle and practices of effective investment management

What is it about?

This course is aimed at those practitioners responsible for controlling the working capital of a company or organisation. It deals with basic principles for smaller companies and strategies for larger enterprises to employ.

Programme

Introduction

• Importance of working capital management
• Cash flow and profit relationship
• Risk and return trade off

The Working Capital Cycle basics

• Cash conversion cycle
• Inventory
• Debtors & Days Sales Outstanding
• Creditors & Days Payable Outstanding

Working Capital Optimisation - theory

• Economic Order Quantities
• Baumol/ Miller-Orr cash management models
• Process improvement (P2P, O2C)

Working Capital Optimisation – basic practice

• Credit control
• Stock control
• Debtor management
• Management reporting – KPI;s

Working Capital Optimisation – advanced practice

• Treasury procedures
• Technology solutions
• Payment systems (CLS, EIPP,B2B)
• End to end cash flow management

Working capital exercise

Financing Working Capital

• Discounting/Factoring
• Supplier financing
• Liquidity management
• Capital intensity

How do you benefit?

You will gain an overview of why working capital management is vital for the profitability and survival of all companies. You will also gain an appreciation of the techniques that can be employed to manage working capital and permanently improve cash flow.

This one-day course involves practical exercises to apply the content to real situations.

Who is it for?

Corporate treasurers, accountants, purchasing specialists and other financial professionals involved with managing working capital for small and large companies.

Trainer

• Damian Pickard BA, FCA, MCT