Cash Flow and Working Capital Management


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 recognized 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.



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

  • Understand the fundamentals of effective management of cash flow, including the optimization of the level of working capital.
  • Develop practical experience of how to manage cash flow and optimize 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 many technical skills, all of which lead to the ability to calculate the required figures and implement them into value-adding business decisions.
  • Understand balance sheets and profit-and-loss statements
  • Understand the importance of cash as the lifeblood 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



Treasury Team Members, Commercial Managers, Receivables and Payables Team Members, Planning and Budgeting Managers, Financial and Management Accountants, Capital Investment and Project Management Team Members.



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 modeling for cash and working capital management
  • Spreadsheet modeling and tools and approaches


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


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