Effective working capital management is essential for sustaining a company‘s everyday operations. Without sufficient cash in the business, companies can be forced into liquidation as a result of not being able to pay suppliers, employees and other liabilities as they fall due. But, the challenge lies in striking the right balance between having enough cash to pay off debts whilst avoiding surplus working capital that won’t be earning a return for the business.
In this course, we’ll take you through the concepts and techniques you need to know to manage a company’s working capital successfully so that you can meet this challenge head-on!
Provides 12 hours of CPD
What you’ll learn:
- The working capital cycle and key working capital ratios so that you can gain an in-depth understanding of an organisation’s liquidity position
- Liquidity ratios for assessing a company’s ability to pay debts when they are due
- An introduction to credit control and debt collection procedures for managing a company’s receivables and how to evaluate them to choose the best-suiting policy
- Receivables age analysis for assessing the effectiveness of current credit control procedures and set appropriate collection targets
- How to calculate the costs of settlement discounts and factoring to determine whether these are cost-effective methods for improving the cash position
- Payables age analysis to help ensure invoices are paid on time, maintaining good supplier relationships and avoiding late payment interest
- How to calculate the benefit of receiving a settlement discount to determine whether it is worthwhile to pay a supplier early
- The Economic Order Quantity model for calculating the inventory order sizes that will minimise inventory costs
- Inventory control systems, including re-order level, periodic review and just-in-time, for optimising the levels of inventory that are held in the business to reduce costs
- How to prepare a cash budget to forecast whether there will be sufficient cash for a business to meet its liabilities or whether other finance needs to be arranged
If all that isn’t enough, this course will also provide you with 30 practice questions and answers to help reinforce your understanding of the topics covered and ensure you’re in the best possible position to apply what you’ve learnt to your role!
- Thoroughly explores the concepts, theories and models for this topic
- The content is professionally explained by our expert tutors alongside a visual presentation
- Come with downloadable audio files so you can listen to the content offline and on the go
- Full coverage of the video content using engaging and easy-to-follow language
- A range of examples to show you how these concepts might apply to real-life situations, e.g. in finance
- A practical exercise for each module based on the subject’s application in a finance team
- A series of exercises purpose-written for the course
- Designed to get you to apply what you’ve learned to yourself and to your own organisation
- Can be used as a basis to make suggestions or improvements in your team or organisation
- A series of questions designed to test your understanding of what you’ve learnt on the course
- Designed to get you to apply what you’ve learned to scenarios and commit the theory to memory
- The visual presentation from the video can be accessed for note-taking and for browsing alongside the video or audio download
- Can be viewed as still slides or in an interactive format to move around the screen
Working Capital Management
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