The Complete Guide To Working Capital Management

Calculate KPIs, Analyze Actual Companies' Financial Performance, and Learn Strategies for Working Capital Optimization

What you'll learn

Learn what working capital is and why working capital management is critical to a business

Calculate the number of days it takes a company to sell inventory, collect receivables, and pay suppliers

Measure the length of the cash conversion cycle and see how it affects the need for financing

Understand how better working capital management can shorten the cash conversion cycle and improve cash flow

Analyze real-world companies to see how different business decisions affect working capital

Identify trends in working capital ratios and interpret whether these trends suggest a worsening financial position.

Learn specific strategies to optimize receivables, inventory, and payables turnover and improve cash flow

Optimize cash management to reduce borrowing costs

Requirements

No previous knowledge is required, but understanding the basics of accounting would be helpful

Description

Welcome to an in-depth journey into the heart of cash flow optimization! In this comprehensive course, we'll explore how to calculate, analyze, and optimize working capital, identifying each component of the cash conversion cycle and providing you with actionable strategies to improve cash flow.Understanding Working Capital: We kickstart the course by unraveling the essence of working capital. Learn its pivotal role in business operations and how it fuels day-to-day activities.Navigating the Cash Conversion Cycle: Dive into the relationship between working capital and the cash conversion cycle. Gain insights into each part of this cycle and understand how it impacts a company's need for external financing.Days Sales Outstanding (DSO) Demystified: Learn how to calculate and interpret trends in days sales outstanding, as well as tips for collecting receivables faster.  Days Sales in Inventory (DSI) Explained: Calculate how many days it takes a company to sell inventory, identify troublesome trends in inventory turnover, and learn specific techniques for reducing the number of days it takes to sell through inventory.Days Payable Outstanding (DPO) Decoded: Assess how a long a company is waiting to pay its suppliers and learn when it is advantageous to take an early-payment discount instead of delaying payment.Cash Management Strategies: Explore the reasons behind holding cash and equip yourself with tools and approaches to efficiently manage your cash reserves.Real-world Applications and Case Studies: Throughout this course, we'll explore real-world case studies and practical examples, allowing you to apply the concepts you're learning in actual business scenarios.Whether you're a business owner, a finance executive, or a curious learner who is simply passionate about improving cash flow, this course will give you the skills and insights needed to analyze and optimize working capital management.

Overview

Section 1: Introduction to Working Capital

Lecture 1 Introduction to Working Capital

Section 2: Days Sales in Inventory

Lecture 2 What is Days Sales in Inventory?

Lecture 3 Why Days Sales in Inventory Matters

Lecture 4 How to Analyze Days Sales in Inventory

Lecture 5 How to Reduce Days Sales in Inventory

Section 3: Days Sales Outstanding

Lecture 6 What is Days Sales Outstanding?

Lecture 7 Why Days Sales Outstanding Matters

Lecture 8 How to Analyze Days Sales Outstanding

Lecture 9 How to Reduce Days Sales Outstanding

Section 4: Days Payable Outstanding

Lecture 10 What is Days Payable Outstanding?

Lecture 11 Why Days Payable Outstanding Matters

Lecture 12 How to Analyze Days Payable Outstanding

Lecture 13 How to Optimize Days Payable Outstanding

Section 5: Cash Management

Lecture 14 Cash Management

Executives or managers interested in reducing borrowing costs and improving cash flow.,Business owners who want to avoid a cash shortfall or liquidity crisis due to poor working capital management.,Suppliers who want to assess the creditworthiness of their customers.,Banking analysts who want to assess the creditworthiness of potential borrowers.,Financial analysts or hedge fund analysts who hope to spot deteriorating financial performance at an early stage.,Students interested in corporate finance, working capital management, or financial statement analysis.