Fundamentals
Target audience
0.5 day
Virtual Classroom
BFR Distance Learning Program
Prerequisites
No prior knowledge is required.
Objectives
◗ Describe the components of working capital and how they change over time.
◗ Understand the mechanisms linking working capital and cash flow.
◗ Implement measures to improve working capital.
Training program
◗ Understand the link between the company's financial flows and WCR
– Definition and components of working capital: accounts receivable, accounts payable, inventory
– Working capital and operating cycle: structure, changes, impact on cash flow
✔ UNDERSTAND | Illustration: relationship between the financial cycle and working capital
✔ APPLY | Practical exercise: classify transactions as current assets or current liabilities
◗ Determine the components of WCR and its structural and cyclical dimensions
– Distinguish between operating, tax, payroll, and investmentworking capital
– Interpret working capital in days or as a percentage of revenue
– Identify favorable or unfavorable variances
✔ UNDERSTAND | Illustration of working capital levels by industry
✔ EVALUATE | Quiz: In your opinion… Which industry or industries have structurally negative working capital?
◗ Identify the impact of WCR on cash flow
– Changes in Working Capital and Their Impact on Cash Flow
– Key Metrics: DSO, DPO, DII
– The Relationship Between Cash Flow and Changes in Working Capital
✔ PRACTICE | Case Study: Changes in Working Capital and Their Impact on Cash Flow
✔ PRACTICE | Workshop: Fill-in-the-Blank Exercise on the Definition of Working Capital
◗ Identify levers for improving WCR
– Optimize the management of accountsreceivable and accounts payable
– Improve the operating cycle
– Not to mention non-operating cash flows (tax, payroll, investments)
✔ UNDERSTAND | Brainstorming on ways to optimize “accounts receivable,” “accounts payable,” and “inventory”
✔ APPLY | Summary case study: analysis of changes in working capital by separating the volume effect, the mix effect, and the DSO/DPO/DII effect
Why choose this course?
Effective management of working capital is key to improving a company’s cash flow.
This training course helps participants understand what working capital is, the challenges associated with it, and how each person can contribute to optimizing it in their own role.
Teaching and assessment methods
Distance learning :
– Three visual elements: a video of the presenter, the presentation, and a virtual whiteboard
– Interactive quizzes
– Maximum of 6 participants
Before: self-assessment quiz
During the session: an overview of key principles, a discussion of practical implications, and examples drawn from recent financial statements. Practical exercises and interactive quizzes help ensure that participants have acquired the necessary knowledge.
Afterward: supplementary materials. The facilitator will be available after the training session to answer any questions related to the training.
Price
740 € EXCL. TAX
Testimonials
BFR distance learning
BFR distance learning
BFR distance learning
Jonathan C.
Company
Training