Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals

Raising Your Cash Management

IQ to Optimize Working Capital

• Improve your company’s understanding of the impacts that

the “hows and whys” of cash flows have on your company’s

bottom line

• Identify inefficiencies in your company’s current working

capital management strategy

• Develop and deliver a quality working capital management

strategic plan to company leaders

• Identify the benefits to your company in improving the visibility

of cash balances, cash inflows and cash outflows

After attending this event you will be able to:

Learning Objectives

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Welcome to Proformative

Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals

Raising Your Cash Management

IQ to Optimize Working CapitalErnie Humphrey, Educational

Programs Leader, Proformative

OUR AGENDA

Working Capital Overview

Elevating your Cash IQ: The Key to Working Capital Management

The ABCs of Success

Closing Thoughts & Resources

Creating & Executing a Working Capital Battle Plan

Cash Management Case Study: Establishing Visibility and Control

WORKING CAPITAL (WC): DEFINITION

FOR THE PURPOSES OF THIS COURSE:

Working Capital = Current Assets – Current Liabilities

Current Assets- cash, accounts receivable (AR), short-term investments, inventoryCurrent Liabilities- accounts payable (AP), short-term notes payable

WORKING CAPITAL MGMT: INHERENT HURDLES

Common Inherent Barriers to Optimizing Working Capital:

Key working capital components are managed in silosThere is a lack of visibility into real-time working capital component values (cash, AR, AP)and the dynamics of working capital movements (payments, receipts, etc.)Information relative to working capital is housed in disparate systems, often in different locations, and sometimes in different countriesCompany leaders do not view working capital management as strategicCompany leaders do not understand the hard dollar cost of ineffective working capital management

IDENTIFYING COMPONENT OPPORTUNITIES

It all starts with visibility. Consider the visibility of working capital components starting with cash

Identify areas for which your department currently has control

Identify areas that your department mayinfluence, but not control

Identify areas that your department does not currently influence.

WORKING CAPITAL: COMPONENT TARETING

Cash is King: Elevating your Cash IQ

Understand where cash is coming and goingWhy it is coming and/or going thereHow it is coming and/or getting thereHow long it takes come places and/or get thereWho controls cash movements & why

WORKING CAPITAL: COMPONENT TARETING

Cash is King:

Review and map existing internal processes for all movements of cash

Cash OutAccounts Payable

Checks, Wires, ACHTax & Dividend PaymentsInter-Company Payments

InvestmentsShort Term

Cash-InAccounts Receivable

Checks, Wires, Inter-Company Payments

CASH VISIBILITY & CONTROL: A CASE STUDY

Indianapolis, IN

Treasury Center

United States

Canada

Netherlands

China

Australia

Mexico

Japan

Taiwan

Germany

Treasury Center

Germany Italy

Czech

Republic

South

Africa

Thank you for your interest in this presentation.

View the on-demand webinar or download the full

presentation at:

www.Proformative.com

Raising Your Cash Management IQ to Optimize

Working Capital