Working Capital And Debtors Management

This DIXONTECH course provides professionals with a practical framework for optimizing working capital and managing debtors efficiently. It focuses on key financial principles that ensure liquidity, reduce costs, and enhance profitability. Participants will learn how to assess working capital requirements, improve cash conversion cycles, manage receivables and payables, and implement effective debtor control strategies to strengthen financial stability and performance.

TRAINING TOPICS:

• Fundamentals of Working Capital Management
• Liquidity and Cash Flow Optimization
• Accounts Receivable (Debtors) Management
• Accounts Payable and Inventory Control
• Credit Policy Design and Implementation
• Cash Conversion Cycle and Efficiency Analysis
• Risk Management and Bad Debt Control
• Financial Ratios and Performance Measurement

BY THE END OF THIS TRAINING COURSE, DELEGATES WILL BE ABLE TO:

•  Understand working capital structure and importance
•  Analyze liquidity and cash flow indicators
•  Design effective credit and collection policies
•  Optimize receivables, payables, and inventory levels
•  Identify and mitigate bad debt risks
•  Enhance cash flow forecasting and control
•  Improve overall financial performance and stability

TRAINING IS TAILORED TO:

•  Finance and accounting professionals
•  Treasury and cash management officers
•  Credit and collection managers
•  Business controllers and analysts
•  Operations and supply chain managers
•  CFOs and financial controllers
•  Banking and corporate finance professionals

TRAINING METHODOLOGY:

The course combines interactive lectures, real-world case studies, and hands-on financial modeling. Participants will perform ratio analysis, design credit policies, and simulate working capital scenarios to apply best practices in managing liquidity and debtors effectively.

DAY 1

INTRODUCTION TO WORKING CAPITAL MANAGEMENT

•  Definition and components of working capital
•  Importance of working capital in business sustainability
•  Relationship between liquidity, profitability, and solvency
•  Determining optimal working capital levels
•  Tradeoffs between risk and return
•  Case study: assessing working capital needs

DAY 2

LIQUIDITY AND CASH FLOW MANAGEMENT

•  Understanding liquidity management principles
•  Preparing and analyzing cash flow statements
•  Short-term cash forecasting techniques
•  Managing surpluses and deficits effectively
•  Using financial ratios for liquidity evaluation
•  Workshop: liquidity planning for real scenarios

DAY 3

RECEIVABLES AND DEBTORS MANAGEMENT

•  Role of accounts receivable in working capital
•  Designing credit policies and limits
•  Credit evaluation and customer risk analysis
•  Effective billing, collection, and dispute resolution
•  Setting KPIs for debtor management
•  Workshop: developing a debtor control system

DAY 4

PAYABLES AND INVENTORY CONTROL

•  Accounts payable management and supplier relationships
•  Trade credit policies and payment terms negotiation
•  Balancing accounts payable and receivable cycles
•  Inventory management techniques (EOQ, JIT, ABC analysis)
•  Integrating supply chain and finance strategies
•  Case study: improving cash conversion efficiency

DAY 5

WORKING CAPITAL OPTIMIZATION AND PERFORMANCE IMPROVEMENT

•  Calculating and improving cash conversion cycles (CCC)
•  Advanced working capital forecasting techniques
•  Managing financial risks and bad debts
•  Benchmarking and ratio based performance evaluation
•  Using technology and ERP systems for automation
•  Final simulation: designing a working capital improvement plan
•  Wrap-up: best practices in working capital management