cash flow and working capital
TRANSCRIPT
Cash Flow and Working Capital
INTRODUCTIONThis highly participative workshop covers the
principles, techniques and skills involved in
the effective management of cash flow and
working capital in any business, blending a
clear theoretical framework with extensive use
of real-life examples and case studies.In the past, many companies gave limited
attention to the management of cash flow and
working capital (in all its forms: stocks,
inventories, spare parts, stores, debtors and
creditors, each usually with several
components). This was despite the fact that
working capital often accounts for more than
1/3 of total capital employed.
In recent years there has been a growing
recognition that, in the long run, effective
management of cash flow is more important
than profit. Long-term cash flow is the real
value of a business. It has also been
recognised that there is significant potential
for improved financial performance from the
more effective management of working
capital both directly from immediate cash
gains and reduced net interest costs, and
indirectly through its impact on increased
profitability and return on capital employed.
A key challenge in achieving these
performance improvements results from the
fact that actual levels of working capital and
delivery of cash flow are effectively
determined by the day-to-day actions of a
great many managers and staff, which in
large corporations often run into tens of
thousands.
WORKSHOP OVERVIEWA thorough grasp of the principles of the
management of cash flow and working capital
is a key competency needed for effective
management of any business. This 2 day
interactive seminar uses both the principles of
current asset management and the power of
Excel® to identify the strategic drivers that
can
enhance
the
shareholder
value of your
organisation. Using
Excel®, delegates will
learn how to master the tools
and techniques it provides to
apply the latest cash flow and
working capital management
techniques, understand what the
numbers are revealing, and be
better able to make strategic
and tactical decisions and
predict the
outcome
of these
decisions.
Participants will be given
Excel® templates for use
during this session. These templates can be
taken with when they return to their
organisations. The power of Excel enables
learners to be taken to a considerably higher
level than that which would be possible using
only manual methods.
WHO SHOULD ATTEND?4Members of the treasury departments of
companies who are responsible for
managing cash flow and working capital. 4Business professionals, strategic and
business development planners, and
project managers who wish to refresh their
understanding and enhance their skills in
managing and improving cash flow and
working capital performance. 4Personnel employed in the banking,
insurance and the general financial
services sector where the management of
cash is of prime importance. 4Any 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.
WHAT WILL YOU LEARN?Objectives of the Workshop 4Acquire an understanding of the
fundamentals of effective management of
cash flow, including the optimisation of the
level of working capital. 4Develop practical experience of how to
manage cash flow and optimise working
capital to facilitate such delivery in real life
business situations. 4Acquire the skills to apply the theory
practically using Excel.4Increase personal financial skill levels.
All professionals attending this seminar will
benefit from refreshing their understanding
and enhancement of their skills in managing
A day PC-based workshop2
“Knowledge empowers...”
Includes elements of unit standard 114740 – Manage Working Capital
FINANCIAL TRAINING INSTITUTE CC2009/167262/23
PO Box 20118Noordbrug 2522
Financial
InstituteTraining
Phone: 082 924 4948/083 296 3541Fax: 086 510 9561
E-mail: [email protected]
Module 1Conceptualising working capital management4The Financial Language. 4Accounting Basics. 4The 3 Key Financial Statements. 4The objective of working capital
management.4The working capital cycle.4Working capital policies.4Cash Flow and Working Capital. 4The Impact of Inflation on Financial
Performance.
Module 2The importance of working capital management4The Cost of Working Capital and time value
of money.4The Economic Value Model. 4The Drivers of Value. 4Valuing Companies and Acquisitions. 4The Time Value of Money and Discounted
Cash Flow (DCF).
Module 3Analysing working capital4The Key Investment Indicators. 4Measuring Performance: Ratios.4Benchmarking of Performance. 4A Performance Management Model.
WORKSHOP OUTLINE
ABOUT YOUR PROGRAMME DIRECTORSProf Jaco Fouché
Jaco Fouché is professor and programme leader for Chartered Accountants' (CA (SA)) training at the Potchefstroom Campus of the North-West University (NWU). He holds the CA (SA) designation, a master's degree in financial management and a PhD in
accountancy education and has more than a decade of teaching experience at various levels of complexity. In this time he has received various outstanding educator and presenter awards, including an award for the best lecturer in the faculty of Economic and Managements Sciences and the KPMG best presenter award at a SAAA national conference.
and improving cash flow and working capital
performance.
TEACHING METHODOLOGYGroups are small and most of the time two
facilitators are present for individual attention.
Delegates are requested to bring their own
personal laptop computers to the course with
a full installation of Excel® including the
complete “Toolbox”. The training comprises
teaching sessions covering each topic with
demonstrations of the applications on each of
the topics. Delegates then use the templates
prepared in advance in order to apply the
knowledge gained on each section to short
case studies, using Excel®. A limited number
of laptops are also available for rent during
the workshop.
Module 4Elements of working capital4Stock (Inventories).
=Total inventory management.=JIT.=EOQ.=Safety stock.=Total cost.=Inventory costing and capacity analysis.=Spoilage, rework and scrap.
4Debtors. =Total cost.=Effect and cost of credit policy.=Securitisation and factoring.
4Creditors. =Cost.=Effect and cost of discounts.
4Short-term financing.
Module 5Working capital requirements4Forecasting working capital requirements.4Learning from Experience.
Module 6Cash flow management4Cash management techniques. 4Reasons for holding cash.4Cost of holding cash.4Cash budgeting.
He was responsible for the financial management module at honours level (CTA) for the CA-programme for 8 years and is currently still involved in teaching financial accounting and financial management. He frequently presents short courses, of which the latest are on continuous professional development (CPD) in the accountancy profession, the basics of accounting as well as corporate and personal financial management.
This versatile and creative educator is also author and co-author of various publications and reviewer for various accredited journals. He is enrolled for the Chartered Financial Analyst (CFA) programme.
Jaco BarnardJaco Barnard is senior lecturer and programme leader for Managerial Accounting (CIMA) training at the Potchefstroom Campus of the North-West University (NWU). Jaco holds the Chartered Accountant (CA (SA)) designation, is a Chartered Institute of
Management Accountants (CIMA) passed finalist and also obtained a B Com Honours in Accounting (CTA).
During his studies, he received various academic achievement awards, including the best B Com Accounting student over three years. Since joining the NWU in 2004, Jaco lectured at various levels of complexity in the subject fields of accounting and managerial accounting. Since his involvement at the university he has received various educator awards, including the award for the best lecturer in the Economic and Management Sciences faculty in 2006.
He is currently responsible for the managerial accounting module at honours level for chartered accounting students. Jaco is actively involved in continuous professional development training and short courses in the accounting profession for various practitioners and other corporate clients. He is enrolled for his Masters degree in performance management.
“Knowledge empowers...”
TERMS: This short course is not assessed, an attendance certificate will however be issued. The language of instruction is English. You must have a working capital experience or a first degree or diploma to enrol and be computer literate. If you have any disability contact us in advance to see how we can accommodate you. For fees, refer to the registration documents on the website.
FASSET Approved Provider, NR 585/01266/10