ADVANCED CASH FLOW & WORKING CAPITAL MANAGEMENT

Introduction:

Cash is important and it should be the core principle of any effective and sustainable company because any firm’s ability to survive and succeed in a difficult age of global competition and sales pressure is critically dependent on its ability to recognize and control main drivers of company cash flow. There has been an increasing realization in recent years that efficient cash flow management is more important in the long run than income. The true worth of a company is the long-term cash flow. It was also agreed that there is considerable potential for increased financial performance from more efficient working capital management – both directly through immediate cash gains and decreased net interest costs, and indirectly through its effects on enhanced productivity and return on equity employed.

A major difficulty in achieving these efficiency changes stems from the fact that the real rates of working capital and cash flow distribution are largely dictated by the day-to-day activities of a vast number of managers and employees. This course centers on the concepts, strategies and skills involved in controlling the cash flow and working capital effectively in any company.

Course Objectives:

At the end of this course, participants will be able to:

• Know the principles of efficient cash flow management, including working capital level optimization
• Develop realistic expertise on how to handle the cash flow and maximize working capital in real-life market environments to promote such delivery
• Improve their level of personal financial skills
• Develop confidence by knowing the key drivers of a good financial results
• Develop a lot of technical skills, all of which contribute to the ability to measure and execute the necessary figures into value-adding business decisions
• Demonstrate an in-depth knowledge of income statement and statement of financial position
• Explain the value of cash as a business’ lifeblood
• Estimate cash flow and plan a cash budget

Course Outline:

Day 1:  Accounting for Cash & Performance

• A Performance Management Model
• The Financial Language
• Accounting Basics
• Cash Flow and Working Capital
• The 3 Key Financial Statements
• Cash VS Profit
• Using financial statement to manage cash and working capital

Day 2: Measuring & Improving Performance

• The Impact of Inflation on Financial Performance
• Measuring Performance: Ratios and KPIs
• Benchmarking of Performance
• Ratios for cash and working capital management
• Basics of working capital management
• Credit Risk Management
• Financial modeling for cash and working capital management
• Spreadsheet modeling and tools and approaches

Day 3: Strategic Cash Management

• Cash & Cost modeling
• The Economic Value Model
• The Time Value of Money and Discounted Cash Flow (DCF)
• The Key Investment Indicators
• Defining the Right 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
• Learning from Experience and Delivering Project Value

Day 4: Optimization of Working Capital

• Optimization not Minimization
• Key Issues
• Stock
• Debtors
• Creditors
• Stores
• Settlement Options
• The Cost of Working Capital
• Long term
• Short term
• Practical Examples
• Engaging the Organization

Day 5: 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 key driver cash flow forecast
• Sensitivity testing cash flow forecasts

Who Should Attend?

• Team members of the Treasury Department
• Planning and Budgeting Managers
• Professionals in Financial and Management Accounting
• Project Managers and their team members

Delivery Method: Lectures, discussions, syndicate work, case studies, role – play and group exercises. Audio – Visual aids will be used to reinforce these training and learning methods.

Venue: London

Fee: $5,000.00

Duration: 1 Week

Date: Aug 7^th – 11^th 2023