The Complete Guide to Working Capital Management

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

Created by: Michael McLaughlin
Award-winning University Professor & CPA

What Will I 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

Target audience

• 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.