Advanced Cash Flow & Working Capital Management

Start Date: 14 Jul 2019
End Date: 18 Jul 2019
Duration: 5
Country: London / UK
Category: Finance, Accounting & Investment


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 cash flow is the real value of a business. It has also been recognised that there is significant potential for improved financial performance from the more effective management of working capital both directly from immediate cash gains and reduced net interest costs, and indirectly through its impact on increased profitability and return on capital employed. A key challenge in achieving these performance improvements results from the fact that actual levels of working capital and delivery of cash flow are effectively determined by the day-to-day actions of a great many managers and staff, which in large corporations often run into tens of thousands.

This highly participative 5-day seminar covers the principles, techniques and skills involved in the effective management of cash flow and working capital in any business, blending a clear theoretical framework with extensive use of real-life examples and case studies.

Key areas covered in this program include:

         Optimising working capital

         Managing accounts receivable

         Managing inventory

         Strategic management of cash & working capital

         Planning, forecasting and monitoring cash and working capital

         Financial modelling tools and techniques for cash and working capital management



By the end of this programme you will be able to:

         Acquire an understanding of the fundamentals of effective management of cash flow, including the optimisation of the level of working capital.

         Develop practical experience of how to manage cash flow and optimise working capital to facilitate such delivery in real life business situations.

         Increase personal financial skill levels

         Develop confidence through understanding the major drivers of successful financial performance.

         Learn a number of technical skills, all of which lead to the ability to calculate the required figures and implement them into value adding business decisions.


Training Methodology

This seminar is strongly participative, with a learning-by-doing style that makes extensive use of examples, and team-based exercises and case studies (both numeric/analytical and non-numeric/descriptive), and open discussion. A fair level of numeracy is an advantage on this course as is some prior familiarity with the financial basics of income statements, balance sheets, and cash flow statements (although this is not essential).

The course will include refresher sessions on accounting and the basics of discounted cash flow (DCF). Each day will comprise several sessions, introducing new material to build on the learning from previous sessions. The program is designed to support the companys organisational values, enabling employees to learn key finance skills.


Organisational Impact

Organisations will benefit from trained managers who will:

         Manage cash and working capital more effectively (including inventory and accounts receivable)

         Be pro-active in seeking and finding approaches to improve both cash and working capital management

         Communicate the importance of improving cash and working capital management to colleagues

         Help others to improve cash and working capital management

         Better budget and plan cash and working capital

Personal Impact

         Understand the basic concepts of finance as it relates to their businesses

         Read and understand balance sheets and profit-and-loss statements

         Be aware of the singular importance of cash as the life blood of a business

         Focus on key management areas of inventory, accounts receivable and accounts payable

         Understand how to control and manage the cash flow of a business

         Forecast cash flows and draft a cash budget

         Evaluate projects based on their expected cash flows

         Incorporate risk into financial decisions


Who Should Attend?

         Members of the treasury departments of companies within the oil and gas, petrochemical, and other industries who have responsibilities for managing cash flow and working capital.

         Business professionals, strategic and business development planners, and project professionals who wish to refresh their understanding and enhance their skills in managing and improving cash flow and working capital performance.

         Personnel employed in the banking, insurance and the general financial services sector where the management of cash is of prime importance.

         Any operational, engineering, commercial, marketing, technical, or financial personnel whose work impacts on cash flow or working capital, and who wish to develop their expertise in these areas to support their current roles or for career development.

All professionals attending this seminar will benefit from refreshing their understanding and enhancement of their skills in managing and improving cash flow and working capital performance.





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



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 modelling for cash and working capital management

         Spreadsheet modelling and tools and approaches



Strategic Cash Management

         Cash & Cost modelling

         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



Optimisation of Working Capital

         Optimisation not Minimisation

         Key Issues





         Settlement Options

         The Cost of Working Capital

         Long term

         Short term

         Practical Examples

         Engaging the Organisation



Final Session

         Course Summary and Checklists

         Cash Budgets & Budgeting

         Financial Skills and Further Development

         Open Forum

         Course Review

The course will have a number of breakout sessions, multiple choice and other question and answer sessions, and case studies to demonstrate the concepts covered and provide real live practical examples, which will facilitate learning.

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