Working Capital Management
Liquidity Ratios, Cash Management, Receivables, Inventory, and Short-Term Funding
About This Course
Course Information
Working capital management is a business strategy designed to ensure that a company operates efficiently by monitoring and using its current assets and liabilities to the best effect. Working capital is an organization’s availability of cash and near-cash assets (such as receivables and inventory) and considers its ability to pay its immediate bills using those funds. This course will help build a better understanding of this topic and you will learn: – What is working capital and how is it calculated? – Key liquidity ratios – How to manage short-term investments – How to manage components of working capital – Short-term funding options
Certificate on Completion
This course is made up of videos, questions and additional reading materials, and accounts for 4 units of CPD. One unit is the equivalent of one hour of learning.
Course Sections
This course is made up of the following sections:
- Liquidity and liquidity ratios (video)
- Liquidity and liquidity ratios (quiz)
- Managing liquidity and cash (video)
- Managing liquidity and cash (quiz)
- Managing components of working capital (video)
- Managing components of working capital (quiz)
- Short term funding (video)
- Short term funding (quiz)
What You Will Learn
- Calculate the current ratio, quick ratio, and cash conversion cycle to assess a company's liquidity position
- Explain how daily cash positioning works and why maintaining a minimum cash balance prevents overdrafts
- Compare short-term investment options including T-bills, certificates of deposit, commercial paper, and repos
- Evaluate the trade-offs between active and passive short-term investment strategies
- Apply techniques for managing accounts receivable, inventory turnover, and accounts payable to improve cash flow
- Identify short-term funding sources such as uncommitted lines of credit, revolving facilities, banker's acceptances, and factoring
Who This Course Is For
- Finance professionals responsible for managing company cash flow and liquidity
- Accountants involved in working capital reporting and analysis
- Treasury and operations staff who manage receivables, payables, or inventory
Prerequisites
- Basic understanding of financial statements (balance sheet and income statement)
- Familiarity with core accounting ratios is helpful but not required
Frequently Asked Questions
Course Details
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