Working Capital Management CO

 

Working Capital Management

Course Objectives

1.     To have a basic understanding of the concept and importance of sound working capital strategies of a firm.

2.     To have an understanding of the impact of working capital policies relating to Cash management, inventory and receivables management on firm’s profitability. 

3.     To gain an insight into the sources of working capital financing

Define Working Capital. What are the Types of working Capital and its Determinants of working capital. Explain the Concept of Working Capital Cycle, Assessment an Computation of Working Capital Requirement, Profitability–Liquidity trade-off, Working Capital Policy - Aggressive & Defensive.

Explain Motives for holding cash, its objectives of cash management. What are the factors determining cash needs. Explain Cash Management Models and Cash Budget. Explain Lock Box system and concentration banking, compensating balances ; Explain Marketable Securities.

Explain Management of Receivables, objectives of receivables management, factors affecting size of receivables. Determination of potential credit policy including credit analysis, credit standards, credit period, credit terms, etc; Explain Collection Policies

Explain Inventory Management: Need for monitoring & control of inventories, objectives of inventory management, Benefits of holding inventory.

What are the Need and objectives of financing of working capital, short term credit, mechanism and cost-benefit analysis of alternative strategies for financing working capital