Working Capital (Cash) Management

One of the primary responsibilities of any treasury professional is to properly manage a firm's financial assets to ensure there is sufficient liquidity to meet current and future financial obligations in a timely and cost-effective manner. This has historically been referred to as cash management. The broader term for this is working capital management. Working capital is technically defined as current assets less current liabilities, which roughly corresponds to cash and liquid assets that can quickly be converted to cash. No matter how wealthy or efficiently run a business or organization may be, there is a limited and fluctuating amount of cash and liquid assets available at any given time. Treasury's responsibility is to manage and use that pool of resources as efficiently and effectively as possible. Financial managers often take a different view of current asset management than operations or sales managers. Operations managers typically prefer a large inventory of raw materials or partially finished goods to meet production quotas. Sales managers similarly favor a large inventory of finished goods to meet consumer demands and a liberal credit policy to stimulate sales. Financial managers, on the other hand, prefer to minimize inventory and accounts receivable (AIR) to minimize the cost of financing these assets. As a result, working capital management spans all areas of an organization. While treasury may lead the effort and bear the ultimate responsibility for results, effective working capital management is normally a cross-functional effort. The 2 day course covers working capital management; working capital metrics,; collections, concentration, and distributions; short term investing and borrowing, long-term and capital investments; cash forecasting; and information technology in treasury.

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  • Item #: ABT0004

Working Capital (Cash) Management

Price: $1,999.00
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