WORKING CAPITAL MANAGEMENT
In some ways, managing cash flow and managing the company’s working capital is the most important job of a CFO. While there are numerous ways to free up working capital, in this module we take a deep dive in the four core strategies to optimize working capital: accounts receivable, accounts payable, inventory and cash management.
How Cash is king. Certainly for companies that require cash to remain competitive, maintain financial flexibility and pursue potential growth opportunities. Companies primarily focused on accessing that financing externally, however, may be overlooking a large, hidden source of capital: their own balance sheets.
To be sure, accessing that cash requires organization-wide financial discipline and a clear working capital optimization strategy. On some level, most companies understand this. However, understanding is not the same as actively implementing strategies for improving your cash flow. If you don’t have a formal working capital strategy, have not adopted appropriate drivers and metrics or simply have not communicated clear policies across the organization, you may be missing out on opportunities to hit your free-cash targets, reduce costs, increase shareholder returns and fund growth.
In this module you will
• Assess areas within your organisation where working capital improvements can be translated to the bottom line
• Improve cash flow and liquidity by following a process of working capital assessment
• Develop a rigorous working capital plan to take your organisation forward in the current economic environment
• Interpret cash flow statements and ratios, and identify positive and negative corporate performance
• Appreciate why cash flow analysis is more important than balance sheet and income statement analysis
• Evaluate free cash flow and the ability of companies to meet their financial commitments
• Understand and apply the new concept of supply chain finance
ABOUT THE FACULTY
Jean-Philippe Michaux graduated as a commercial engineer from the Solvay Brussels School. He worked for ten years at PWC focusing on international groups and for various transactions such as mergers, divisions, IFRS conversions, ... In November 2010 he made the switch to Puratos where he works in the internal audit department. From January 2013 he held various positions within the financial team and in April 2014 he became CFO of the group. He is also a teacher at Solvay Brussels School (Master and Executive Education)