Working Capital Management

Introduction

This course provides a comprehensive overview of working capital management, focusing on strategies to optimize liquidity and ensure business success.

Objectives

• Understand the fundamentals of working capital management
• Analyze the components of working capital
• Evaluate strategies to improve cash flow
• Develop skills to manage receivables, payables, and inventory
• Apply best practices to optimize working capital in real-world scenarios

Course Outlines

Day 1: Introduction to Working Capital

• Definition and importance of working capital
• Components of working capital
• Operating cycle and cash conversion cycle
• Types of working capital
• Key challenges in working capital management

Day 2: Cash Management

• Objectives of cash management
• Techniques for forecasting cash flows
• Managing cash surpluses and deficits
• Bank relationships and cash management tools
• Case studies in cash management

Day 3: Receivables and Payables Management

• Credit policy and credit terms
• Assessment of customer creditworthiness
• Collection strategies and techniques
• Managing accounts payable efficiently
• Balancing receivables and payables for liquidity

Day 4: Inventory Management

• Role of inventory in working capital
• Inventory control techniques
• Economic Order Quantity (EOQ) and Just-in-Time (JIT)
• Inventory valuation and optimization
• Minimizing carrying and stockout costs

Day 5: Working Capital Optimization and Best Practices

• Integrating working capital components
• Key performance indicators and benchmarking
• Technological tools for working capital management
• Case studies and group exercises
• Developing a working capital improvement action plan