The primary aim of working capital management is
to maximize company value while maintaining ready
access to funds required for day-to-day operations
and payments to creditors.
Learning objectives
- Use financial ratio analysis to evaluate the effectiveness of working capital use.
- Determine the working capital cycle.
- Explain relations between working capital, liquidity, and short-term funding needs.
- Evaluate alternative courses of action and provide information to support decisions on working capital.
- Apply different approaches to working capital management: profit-based vs. value-based.
- Determine the risks and opportunities related to working capital management.
Additional information
Target audience
CFOs, finance business partners, management accountants, financial / cost controllers, planning and analysis specialists, internal auditors, accountants.
Timing and delivery
Training date (2 workshops): 12 & 19 June 2025
Duration: 8 hours - from 9:00 to 13:15 CET
(including one 15-minute break)
Format: Open training, LIVE/Online
Language: English
We offer this course in a closed form, tailored to the needs of a given client.
Training program
The training program below is a sample and can be modified to meet the unique business needs of the organization.
Components of working capital:
- Receivables collection period.
- Payables payment period.
- Inventory days.
- Operating cycle.
- Cash conversion / working capital cycle.
- Liquidity ratios.
Profit-based working capital management:
- Relationship between working capital and profitability.
- Case study.
Value-based working capital management:
- Relationship between working capital and shareholder value.
- Working capital changes and impact on discounted future free cash flow (DCF).
- Case study.
Different techniques used to manage working capital:
- Strategies of working capital management: aggressive, moderate, and conservative.
- Methods of inventory management: ABC inventory matrix, just-in-time (JIT) system, the economic order quantity (EOQ) model.
- Methods of trade receivables management: credit control procedures, debt factoring, and invoice discounting.
- Methods of trade payables management. Effective cost of trade credit.
- Methods of cash management.
- Risks of overtrading.
- Risks and opportunities related to working capital management.
Organisational information
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