About the Course

Working capital management generally includes monitoring cash flow, current assets, and current liabilities through ratio analysis of the important elements of operating expenses, containing the working capital ratio, collection ratio, and inventory turnover ratio. In recent years, there has been a growing recognition that, in the long run, effective management of cash flow is more important than profit. Long-term working capital and cash flow management are the actual value of a business.

There is significant potential for improved financial performance from the effective management of working capital – directly from immediate cash gains and reduced net interest costs and indirectly through its impact on increased profitability and return on capital employed.

This Advanced Cash Flow and Working Capital Management Course covers the principles, techniques, and skills involved in effectively managing cash flow and working capital in any business.

Target Participants

Training on Advanced Cash Flow and Working Capital Management is designed for finance managers, finance officers, accountants, financial controllers, treasury managers, cash managers, budget officers, chief financial officers (CFOs), auditors, business analysts, project finance professionals, investment analysts, procurement and supply chain managers, business owners, and any professionals responsible for financial planning, cash flow management, liquidity, budgeting, and working capital optimization.

Course Duration

One week

What You Will Learn

By the end of this course the participants will be able to:

• Master the principles of accounting for cash flow
• Develop your skills in analyzing and interpreting cash flow statements
• Implement effective practical strategies for working capital optimization
• Be proficient in capital investment evaluation methods
• Provide relevant advice on business funding strategy
• Use financial models to produce cash flow forecasts

Course Outline

Foundation Principles

• Fundamentals of Cash Flow and Working Capital
• Principles of Business Accounting and Financial Statements
• The Vital Difference between Profit and Cash Flow
• Analyzing and Interpreting the Cash Flow Statement
• The Drivers of Cash Flow, Liquidity and Solvency

Understanding and Improving Operating Cash Flow

• Understanding Cost Behavior
• The Cost – Volume – Profit Relationship
• The Drivers of Profit and Shareholder Value
• Measuring and Managing – Return on Investment
• Measuring and Managing – Asset Management Efficiency
• A Strategic Approach to Cost Reduction

Measuring and Improving Performance

• The impact of inflation on financial performance
• Measuring performance: ratios and KPIs
• Benchmarking of performance
• Ratios for cash flow and working capital management
• Basics of working capital management
• Credit risk management
• Financial modeling for cash flow and working capital management
• Spreadsheet modeling and tools and approaches

Strategic Cash Management

• Cash flow and Cost modeling
• The economic value cash flow model
• Time value of money and discounted cash flow (DCF)
• The critical investment indicators
• Defining the proper base case, sensitivity, and risk analysis
• Treatment of working capital
• Valuing companies and acquisitions
• Where does net present value (NPV) come from?
• The drivers of value

Optimization of Working Capital

• Optimization, not minimization
• Stock
• Debtors and Creditors
• Settlement options
• The cost of working capital
• Long-term and Short-term
• Practical examples
• Engaging the organization

Cash Flow Planning and Forecasting

• Approaches to managing cash resources
• Cash flow forecasting methods
• An integrated approach to risk management
• Techniques for managing risk
• Building a fundamental driver cash flow forecast
• Sensitivity testing cash flow forecasts

Training Approach

Our Training on Advanced Cash Flow and Working Capital Management is delivered by our seasoned trainers who have vast experience as expert professionals in their respective fields of practice. The course is taught through a mix of practical activities, presentations, group work, and case studies.

Training notes and additional reference materials are provided to the participants.

Certification

Upon successful completion of this Training on Advanced Cash Flow and Working Capital Management course, participants will be issued a certificate.

Tailor-Made Course

We can also do this as a tailor-made course to meet organization-wide needs.