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Oxford Management Centre

Advanced Cash Flow & Working Capital Management

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Next dates

Apr 28—May 2
5 days
Dubai, United Arab Emirates
USD 4950
USD 990 per day
Oct 13—17
5 days
Dubai, United Arab Emirates
USD 4950
USD 990 per day

Description

INTRODUCTION

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 seminar will highlight:

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

OBJECTIVES

The objectives of the seminar are to provide delegates with the necessary tools and techniques to enable delegates 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.

At the end of this seminar, you will learn to:

  • Read and understand balance sheets and profit-and-loss statements
  • Understand the basic concepts of finance as it relates to their businesses
  • 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

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 company’s organisational values, enabling employees to learn key finance skills.

ORGANISATIONAL IMPACT

By attending this seminar:

  • Delegates will have a clear understanding of how to 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

As a delegate you will:

  • 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

Agenda

Day1 - Accounting for Cash & Performance

  • A Performance Management Model
  • The Financial Language
  • Accounting Basics from source documents to the General Ledger
  • Cash Flow and Working Capital
  • The 3 Key Financial Statements
  • Cash Vs Profit
  • Using financial statement to manage cash and working capital

Day2 - Measuring and 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.

Day3 - Optimisation of Working Capital.

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

Day4 - Strategic Cash Management

  • Cash & Cost modelling
  • The Time Value of Money and Discounted Cash Flow (DCF)
  • Net Present Value (NPV) and Internal Rate of Return (IRR)
  • The Key Investment Indicators
  • Defining the Right Base Case, Sensitivity and Risk Analysis
  • Treatment of Working Capital
  • Valuing Companies and Acquisitions
  • The Drivers of Value
  • Delivering Project Value
  • Day5 - Final Session

  • Seminar Summary and Checklists

  • Cash Budgets & Capital Budgets reviewed

  • Financial Skills and Further Development

  • Open Forum

  • Seminar Review

Who should attend

This seminar is suitable for:

  • 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.
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