Euromoney Learning Solutions

Cash Flow Management & Working Capital Optimisation

Available dates

Dec 4—6, 2019
3 days
London, United Kingdom
GBP 3395 ≈USD 4386
GBP 1131 per day


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About the course

Learn how to analyse & effectively manage an organisation's working capital

This three day cash flow management course will centre on practical issues of working capital management with a focus on today’s economic environment.

A strong cash flow management theme will ensure that all aspects of working capital, from systems to processes and receivables, payables and inventory management, will steer to cash enhancement.


  • Assess areas within your organisation where working capital improvements can be translated to the bottom line
  • Improve cash flow and liquidity by following a process of working capital assessment
  • Develop a rigorous working capital plan to take your organisation forward in the current economic environment
  • Interpret cash flow statements and ratios, and identify positive and negative corporate performance
  • Appreciate why cash flow analysis is more important than balance sheet and income statement analysis
  • Evaluate free cash flow and the ability of companies to meet their financial commitments
  • Understand and apply the new concept of supply chain finance

Course Methodology

To ensure that the course is highly practical and relevant, the course will be based on a blend of training techniques, including:

  • Leading edge, short, formal presentations on the theory and practice of cash flow statements
  • Review of topical articles and background information on cash flow analysis and related subjects to illustrate the practical issues
  • Group syndicate work and classroom discussion
  • Exercises and case studies using excel


Session 1 - Cash Management

  • Cash management and liquidity
  • Cash flow and working capital
  • Managing cash flow:
    • Payments methods
    • Collection alternatives
  • Financing working capital
  • Investing methods

Session 2 - Working Capital

  • Fundamentals of working capital
  • Why working capital
  • Ratios used in working capital
  • Applications to different industries:
    • Retail
    • Manufacturing
    • Oil and gas
  • Case Study

Session 3 - Identifying Cash Flow Problems

  • The benefits of up to date forecasting
  • Watching the market closely for changes
  • Signs that your customers are in difficulty
  • How to avoid cash flow problems

Session 4 - Accounts Receivable

  • Receivable Management
  • Receivable cycle – ratios
  • Ageing receivables
  • Credit reporting
  • Financing sales
  • Terms of credit
  • Collection processes
  • Case Study

Session 5 - Inventory Management

  • Managing inventory
  • Inventory cycle management
  • Purchasing
  • Economic order quantities (EOQ)
  • Financing inventory
  • Just-in-time (JIT)
  • Inventory systems
  • Case Study

Session 6 - Payables Management

  • The payables processes management
  • Payables management
  • Accounts payable department – functions
  • Outsourcing payables
  • Case Study

Session 7 - Analysing Historic Cash Flow Statements - The Drivers of Cash

  • Structure of cash flow statements
  • Profitability measures
  • Working investment management
  • Investment decisions – impact of capital expenditure, acquisitions and disposals
  • Funding decisions
  • Different drivers in different businesses
  • Relating cash flows to loan repayment
  • Case Study

Session 8 – How to Construct a Cash Flow Statement from the Income Statement and Balance Sheet

  • Income statement, current assets and current liabilities to provide the cash from operating activities
  • Non-current assets provides the cash from investing activities
  • Debt and equity provides the cash from financing activities
  • Working capital movements
  • Capital expenditure
  • Movement in debt
  • Dividends
  • Interest and taxation paid

Session 9 - In Depth Analysis Understanding the Priority of Cash Flows

  • EBITDA, operating cash flow and free cash flow
  • Lumpy and volatile cash flows
  • Allocating available cash to appropriate resources
  • Debt capacity and structure
  • Case Study

Session 10 - Cash Flow Ratios

  • Uses and limitations with standard ratios
  • Putting EBITDA into perspective
  • Defining free cash flow
  • Serviceability
  • Priority outflow cover
  • Capital structure

Session 11 - Debt Capacity (short session)

  • Establishing debt horizons
  • Total debt capacity
  • Additional debt capacity
  • Capital structure implications

Session 12 – Liquidity

  • Operational liquidity:
    • Revenue volatility
    • Cash conversion cycle
    • Cost structures
    • Working investment
  • Free Cash Flow (FCF) and effect on liquidity:
    • Capex in FCF – mandatory versus expansionary
    • Capex in airline industry and how to disclose for credit analysis
    • Using net debt / FCF ( industry benchmarks)
  • Non-operational liquidity
  • Measuring total liquidity
  • Key issues
  • The need for liquidity planning

Session 13 - Analysing Complex Cash Flows

  • Looking at cash flows in conglomerate companies
  • Understanding different businesses typical cash flows
  • Spotting creative accounting situations
  • Cash flows in groups (inter-company trading)
  • Taxation, including net operating losses\
  • Provisions (restructuring, environmental, deferred taxation), effects on income statement and cash flow
  • Exercise: Review of the summarised cash flows of a conglomerate to analyse the composition of the corporate cash flows and using Excel to analyse cash flow

Session 14 - Evaluation of Risk in the Operating Cycle

  • Business risk - what is the nature and viability of the business assets?
  • Financial Risk - how much outside financing is required to complete the operating cycle?
  • Performance Risk - how well are expenses controlled?
  • Management Risk - management are the key to identifying and minimising all risks in a business - are they capable and experienced?

Session 15 - The Operating Cycle of a Business and how it is Financed

  • An overview designed to stimulate participants into thinking how a business cycle works and how it is financed
  • Exercise: Looking at the business risks, financial statements and management issues relating to an assigned case study company. Participants will critique these factors and the implications for lending

Session 16 – Variations of Supply Chain Finance

  • Accounts Payable;
    • Approved payable finance (Reverse factoring)
    • Dynamic discounting
  • Receivable Finance;
    • Receivable purchase
    • Invoice discounting
    • Factoring
    • Forfeiting
  • Other Supply Chain Finance:
    • Pre-shipment or purchase order-based finance
    • Inventory finance (warehouse finance)
  • Related:
    • Documentary trade finance
    • Bank payment obligation
    • Asset-based lending
    • Payments and foreign exchange
  • Legal considerations

Session 17 – Success Factors in Supply Chain Finance

  • Strategies, goals and financing decisions
  • Marketing the structure
  • Who do we partner with – the key risks
  • Selecting the right structure
  • Spend analysis
  • Supplier on-boarding
  • Legal considerations
  • Accounting considerations

Session 18 - Fee Structure for SCF

  • Overview of fee structure
  • Transfer of title:
    • The buyer and supplier
    • Type of legal instrument for collateral
    • Underlying instrument used for the financing
  • Limits and thresholds – decision constraints
  • Payments conditions and trigger dates
  • Risks:
    • Risk is wholly on the supplier with no recourse
    • Risk is wholly on the supplier with possible form of recourse
    • Risk is wholly on the buyer without recourse to the supplier
    • Risk is shared in some agreed proportion between the parties
  • Benefits:
    • Tangible
    • Intangible
  • Costs

Session 19 - Buyer Centric Supply Chain Finance solutions

  • Corporate payment options
  • Corporate systems
  • Implementing a buyer-led SCF program

Session 20 - Seller Centric Supply Chain Finance solutions

  • Traditional – factoring, distributor finance and non-traditional
  • Credit enhancing receivables for SCF
  • Exchanges for receivables not credit enhanced

Summary and Close

Trust the experts

Andre Lanser

Andre is a consulting trainer as well as a corporate finance practitioner and he has delivered courses around the world in the areas of Credit, Corporate Finance, Valuation and Financial Modelling both for Corporates and Banks. Andre originally qualified as a Chartered Accountant, completing arti...


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