Cash Flow & Working Capital Management

Cash Flow & Working Capital Management

Dates	9 - 13 May 2010	7 - 11 November 2010
Location	Dubai	Dubai
Fees	US$3,850	US$3,850
CPE Credits	30	30

Introduction

This new and highly participative 5-day seminar 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.

Seminar Objectives

By the end of this programme you will be able to:

Acquire an understanding of the fundamentals of effective management of cash flow, including the optimisation of the level of working capital
Develop practical experience of how to manage cash flow and optimise working capital to facilitate such delivery in real life business situations
Increase personal financial skill levels

Who Should Attend?

Members of the treasury departments of companies within the oil and gas, petrochemical, and other industries who have responsibilities for managing cash flow and working capital
Business professionals, strategic and business development planners, and project professionals who wish to refresh their understanding and enhance their skills in managing and improving cash flow and working capital performance
Personnel employed in the banking, insurance and the general financial services sector where the management of cash is of prime importance
Any 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.

All professionals attending this seminar will benefit from refreshing their understanding and enhancement of their skills in managing and improving cash flow and working capital performance.

Organisational Impact

The program is designed to support the company’s organizational values, enabling employees to learn key finance skills. This has an impact directly on adding value both to the intellectual capital and to the profit potential of the organisation. It is widely accepted that managers in financial and non financial divisions need to have a good grasp of the crucial role of cash flows and working capital management. The course directs its attention to these financial issues.

Personal Impact

Participants will be confronted with the concepts which are at the core of financial management. This will develop a cogent view of the forces which drive investments and the risks which are inherent in the alternative asset classes. This has value both contributing toward an efficiently run business as well as for personal financial planning.

As all departments within a business deal with some aspect of finance, it will lead to the ability to multi task and converse confidently with other managers on financial and budgeting issues. This knowledge should equip participants to be able to advance their careers as a result of understanding the various subject covered. In particular they will be able to:

Understand the basic concepts of finance as it relates to their businesses
Read and understand balance sheets and profit-and-loss statements
Be aware of the singular importance of cash as the life blood of a business
Focus on key management areas of inventory, accounts receivable and accounts payable
Understand how to control and manage the cash flow of a business
Forecast cash flows and draft a cash budget
Evaluate projects based on their expected cash flows
Incorporate risk into financial decisions

Competencies Emphasised

The first main competency which is developed is a familiarization with the terms used in finance to ensure that participants return with an adequate financial vocabulary. The second main competency which is emphasized is the development of confidence through understanding the major drivers of successful financial performance. Thirdly, a number of technical skills are learned, all of which lead to the ability to calculate the required figures and implement them into value adding business decisions.

Training Methodology

This seminar is strongly participative, with a learning-by-doing style that makes extensive use of examples, and team-based exercises and case studies (both numeric/analytical and non-numeric/descriptive), and open discussion.

A fair level of numeracy is an advantage on this course as is some prior familiarity with the financial basics of income statements, balance sheets, and cash flow statements (although this is not essential).

The course consists of 3 main modules, and includes revision and refresher sessions on accounting and the basics of discounted cash flow (DCF). Each day will comprise several sessions, introducing new material to build on the learning from previous sessions.

The seminar manual includes copies of all the slides used, and Excel models and access to a glossary of financial terms.

Seminar Outline