Courses / Short Learning Series
Working Capital Management
SL-11 · Business finance
Learn how to free up cash by managing the three parts of working capital: receivables, payables and inventory. You will calculate the cash conversion cycle, value every day you save, and apply practical tools for collecting faster, paying suppliers on the right terms and holding the right amount of stock.
Who it's for
Business owners, managers and finance professionals who want to improve cash flow without damaging customer or supplier relationships.
What you'll be able to do
- Calculate DSO, DIO, DPO and the cash conversion cycle, and value the cash released by improving them
- Design a credit policy, invoicing practice and collection timeline that speed up customer payments
- Evaluate early-payment discounts and manage supplier terms and payment runs
- Use ABC analysis, reorder points and the economic order quantity to set inventory levels
- Estimate the cash needed to fund growth and act on slow-moving stock
Lessons
- 1The cash conversion cyclereading
- 2Collecting receivables fasterreading
- 3Managing payables and supplier termsreading
- 4Inventory levels and cashreading