A growing recognition has been witnessed in the recent years. In the long run, Cash flow for effective management is more essential than profit. The real value of a business is termed as “Long-term cash flow”.
A significant potential for improved financial performance has also been recognized for more efficient and effective management of the working capital. This is both directly from the reduced net interest costs, immediate cash gains, and indirectly via its significant impact on the return on capital employed and increases profitability.

The foremost key challenge in terms of achieving these performance enhancements and improvements results from the very fact that actual working grounds of the delivery of cash flow and the working capital are determined effectively by assessing the day-to-day actions of a great many staff, and managers, which in large corporate organizations run often into tens of thousands.

Who Should Attend?

  • Members from the oil and gas industries belonging to the treasury departments, petrochemical, and other industry members who are responsible for managing the working capital and cash flow.
  • Business development professionals and planners, and project management professionals who are willing to enhance their skills and understanding in improving and managing the working capital performance and the cash flow.
  • Professionals from the insurance, banking and general services sector where the factor of prime importance is management of cash.
  • Any professional belonging from the departments such as engineering, marketing, commercial, operational, financial or technical whose work effects or impacts on the working capital or cash flow, and at the same time who wishes to enhance their skills and expertise in these areas of their current job roles for their professional career development.
  • All professionals attending this course will benefit from the updated, more thorough and fresh understanding of their skills in improving and managing the working capital performance and the cash flow.

Course Objectives:

By the end of this course, the delegate will be able to:

  • Pursue an utmost understanding of the principals of effective management of cash flow, including the level of working capital optimized.
  • Grow and enhance the practical experience of managing the cash flow and optimizing the working capital to promote such type of delivery in the real-life businesses.
  • Expand the levels of personal financial skills.
  • Grow and increase the confidence through a proper understanding of financial performance drivers.
  • Acquire technical skills, which will lead to better understanding on how to calculate the designated figures and the procedures to implement them into value through business decisions.

Course Outline:

Basis for Accounting: Cash & Performance

  • Management Model based on performance
  • Concepts of Financial Language
  • Source documents to the general ledger: Accounting Basics
  • Working Capital and the Cashflow
  • 3 Key Financial Statements
  • Profit Vs Cash
  • Managing working capital and cash using financial statement

Improvement and Measurement of Performance

  • Inflation: The impact on financial performance
  • Measuring Performance: Ratios and KPIs
  • Principles of performance measurement: KPIs and Ratios
  • Performance benchmarking
  • Working capital management and cash ratios
  • Working capital management basics
  • Credit Risk Management
  • Working capital management and cash financial modeling
  • Approaches and tools and spreadsheet modeling

Working Capital Optimization

  • Optimisation not Minimisation
  • Critical Issues
  • Stocks
  • Debt/Debtors
  • Credit/Creditors
  • Stores
  • Options for settlement
  • Working capital cost
  • Long-term
  • Short term
  • Practical Examples

Strategic Management of Cash

  • Cost & Cash modelling
  • The Time value of Discounted Cash Flow (DCF) and Money
  • Net Present Value (NPV) and Internal Rate of Return (IRR)
  • Internal rate of return (IRR) and net present value (NPV)
  • The indicators for the key investment
  • Defining sensitivity, the right base case and risk analysis
  • Working Capital Treatment
  • Valuing Acquisitions and Companies
  • Value: The leading drivers
  • Project Value Delivery

Final Session

  • Course Summary and Checklists
  • Capital Budgets and cash budgets reviewed
  • Excel and financial skills and additional development
  • Open Forum
  • Course Review