Overview

Working Capital Management (WCM) is the process of planning, monitoring, and controlling an organization's short-term assets and short-term liabilities to ensure sufficient liquidity for daily operations while maximizing profitability and shareholder value. It is one of the most important functions of financial management because it directly influences an organization's ability to meet its short-term obligations, finance its day-to-day operations, and maintain financial stability.

Working capital represents the funds invested in current assets such as cash, accounts receivable, inventory, and short-term investments, less current liabilities such as accounts payable, accrued expenses, and short-term borrowings. Effective working capital management ensures that an organization maintains the right balance between liquidity and profitability. Too much working capital may indicate inefficient use of resources, while too little working capital can lead to cash shortages, operational disruptions, and financial distress.

In today's dynamic business environment, characterized by economic uncertainty, inflation, changing customer payment behaviors, supply chain disruptions, and increasing competition, organizations must manage working capital strategically to maintain liquidity, improve operational efficiency, and support sustainable growth.

Working Capital Management is essential across all sectors, including manufacturing, banking, retail, healthcare, agriculture, telecommunications, government institutions, educational institutions, and non-governmental organizations (NGOs).

Course Duration

5 Days (40 Hours)

Target Participants

This course is designed for:

• Chief Finance Officers (CFOs)
• Finance Directors
• Finance Managers
• Treasury Managers
• Financial Controllers
• Management Accountants
• Accountants
• Financial Analysts
• Credit Controllers
• Accounts Receivable Officers
• Accounts Payable Officers
• Procurement and Supply Chain Managers
• Inventory Managers
• Operations Managers
• Internal Auditors
• Risk Managers
• Business Owners and Entrepreneurs
• NGO Finance Officers
• Government Finance Officers
• CPA, ACCA, CIMA, CMA, and CFA Candidates

Course Objectives

By the end of the training, participants will be able to:

• Understand the principles and importance of working capital management.
• Analyze and interpret working capital components.
• Manage cash, receivables, inventory, and payables effectively.
• Calculate and improve the cash conversion cycle.
• Assess liquidity and operational efficiency using financial ratios.
• Develop strategies to optimize working capital.
• Strengthen credit and collection management.
• Improve supplier payment strategies.
• Use Excel and Power BI for working capital analysis and reporting.
• Support organizational financial sustainability and profitability.

Day 1: Foundations of Working Capital Management

Module 1: Introduction to Working Capital Management

Topics

1. Introduction to Working Capital Management
2. Objectives and Importance of Working Capital
3. Components of Working Capital
4. Gross and Net Working Capital
5. Working Capital Cycle
6. Liquidity and Solvency
7. Working Capital Policies (Conservative, Aggressive, Moderate)
8. Relationship Between Working Capital and Profitability
9. Working Capital Risks
10. Best Practices in Working Capital Management

Day 2: Cash and Receivables Management

Module 2: Managing Cash and Accounts Receivable

Topics

1. Cash Management Principles
2. Cash Forecasting
3. Cash Budgeting
4. Accounts Receivable Management
5. Credit Policy Development
6. Customer Credit Assessment
7. Collection Strategies
8. Aging Analysis of Receivables
9. Bad Debt Management
10. Improving Cash Collections

Day 3: Inventory and Payables Management

Module 3: Inventory and Accounts Payable Management

Topics

1. Inventory Management Principles
2. Inventory Valuation Methods
3. Economic Order Quantity (EOQ)
4. Inventory Turnover Analysis
5. Just-in-Time (JIT) Inventory
6. Accounts Payable Management
7. Supplier Relationship Management
8. Payment Terms Negotiation
9. Managing Trade Credit
10. Optimizing the Cash Conversion Cycle

Day 4: Working Capital Analysis and Performance Improvement

Module 4: Financial Analysis and Optimization

Topics

1. Liquidity Ratio Analysis
2. Current Ratio and Quick Ratio
3. Working Capital Ratio Analysis
4. Cash Conversion Cycle Analysis
5. Trend Analysis
6. Benchmarking Working Capital Performance
7. Industry Best Practices
8. Working Capital Improvement Strategies
9. Risk Management in Working Capital
10. Working Capital in Different Industries

Day 5: Technology, Case Studies, and Capstone Project

Module 5: Technology and Modern Working Capital Management

Topics

1. Microsoft Excel for Working Capital Analysis
2. Power BI Dashboards
3. ERP Systems (SAP, Oracle ERP, Microsoft Dynamics 365)
4. Treasury Management Systems
5. Data Analytics for Working Capital
6. Artificial Intelligence in Cash Forecasting
7. Automation of Receivables and Payables
8. Integrated Working Capital Case Study
9. Group Project Presentation
10. Course Review and Action Planning