You can always tell a business is doing well by looking at its profits, right? That’s the bottom line. Well, hold on. It’s not the full picture. What if the business has great profits, but isn’t holding enough cash to keep the lights on? Running out of cash can spell disaster for businesses. That’s why it’s important to manage working capital.

Working-capital management ensures there are enough funds for a business to go about its day-to-day operations, such as buying stock or paying staff. To manage working capital effectively, you need to know about the cash conversion cycle, asset monitoring, and indirect cash flows. There are also ways to improve working-capital management to make sure the business stays successful.

By the end of this course, you’ll be able to:

• Identify the 3 main elements of working capital, so you can effectively manage them
• Explain the cash conversion cycle, so you can manage the time it takes to pay monies owed
• Demonstrate an understanding of asset monitoring to maintain cash flow
• Demonstrate an understanding of the indirect method of calculating cash flows
• Manage working capital more effectively

Why take this course?

Working-capital management is key to making sure a business has enough cash for day-to-day operations. If you’re a business leader, team leader, or manager, you’ll benefit from a greater understanding of how to manage working capital. In this course, you’ll learn about the 3 main elements of working capital, the cash conversion cycle, asset monitoring, and indirect cash flows. You’ll also discover ways to improve working-capital management.

20 mins | SCORM | Workbook