Working Capital Essentials: Receivables, Payables, and Inventory Levers

Working capital management is one of the most important, yet often underappreciated, aspects of financial management. It determines a company’s ability to meet short-term obligations, fund operations, and seize new opportunities. By focusing on the three main levers-receivables, payables, and inventory-businesses can strengthen liquidity and improve efficiency.

This session begins by defining working capital and explaining how it is calculated. Participants will learn why positive working capital doesn’t always mean strong liquidity and how different industries approach working capital differently.

We then dive into receivables management, focusing on strategies to accelerate collections, set effective credit terms, and monitor overdue accounts. Real-world practices such as credit checks, incentives for early payment, and robust invoicing systems will be discussed.

Next, we address payables. Participants will learn how to balance the benefits of extending payables with the need to maintain strong supplier relationships. We’ll explore negotiation tactics, the role of payment terms in cash flow planning, and the risks of over-reliance on delayed payments.

The session also covers inventory management, which often represents the largest portion of working capital. We’ll discuss methods to optimize inventory-such as just-in-time (JIT), demand forecasting, and safety stock management-while balancing the need to meet customer demand.

Participants will also learn how to measure and monitor working capital performance using metrics like days sales outstanding (DSO), days payable outstanding (DPO), and days inventory outstanding (DIO). By tying these metrics together, we’ll show how to calculate the cash conversion cycle, a powerful measure of overall working capital efficiency.

Finally, we’ll explore how working capital management supports strategic decision-making. From freeing up cash for investments to building resilience during downturns, mastering these levers can strengthen both short-term liquidity and long-term competitiveness.

By the end of the course, participants will have the knowledge and tools to assess their company’s working capital position and implement practical improvements that drive results.

Why You Should Attend:
Many businesses focus on profits but overlook working capital-the financial engine that keeps operations moving smoothly. Without effective management of receivables, payables, and inventory, even profitable companies can run into liquidity challenges that limit growth or jeopardize survival.

This session is designed to help you take control of working capital and transform it from a potential risk into a competitive advantage. You’ll learn how to accelerate receivables collection without straining customer relationships, how to manage payables strategically to balance liquidity with supplier trust, and how to optimize inventory levels to avoid tying up too much cash.

Participants will also explore the ripple effects of working capital decisions. Extending payables may improve short-term liquidity but could damage supplier partnerships. Holding excess inventory may safeguard against demand swings but can also lock away valuable cash. By understanding these trade-offs, you’ll be better positioned to make decisions that support both financial health and long-term strategy.

Whether you’re a finance professional, business owner, or operational leader, this course will give you the tools to assess, monitor, and optimize working capital. In today’s uncertain environment, where cash flexibility is more critical than ever, managing these levers effectively can be the difference between thriving and merely surviving.

Area Covered in Session:

• What working capital is and why it matters
• Calculating working capital and understanding its limits
• Receivables management: speeding up collections effectively
• Setting credit terms and managing overdue accounts
• Payables management: balancing liquidity with supplier relationships
• Negotiating payment terms and avoiding risks of overextension
• Inventory management strategies for liquidity and efficiency
• Key metrics: DSO, DPO, and DIO explained
• The cash conversion cycle: a holistic view of working capital
• Industry differences in working capital practices
• Real-world trade-offs between liquidity and operations
• Practical strategies to unlock hidden cash from working capital
• Building resilience through better working capital management

• Anyone that works in a Financial Institution