Cash Flow & Working Capital Management

Cash Flow & Working  Capital Management

OBJECTIVES

• Acquire an understanding of 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

WHO SHOULD ATTEND?

• 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.

COURSE OUTLINE

Operational Cash Management

• A Performance Management Model
• The Financial Language
• Accounting Basics
• Cash Flow and Working Capital
• The 3 Key Financial Statements
• The Impact of Inflation on Financial Performance
• Measuring Performance: Ratios and KPIs
• Benchmarking of Performance

Strategic Cash Management

• 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

Optimization of Working Capital

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

Final Session

• Course Summary and Checklists
• Financial Skills and Further Development
• Open Forum
• Course Review