Liquidity and Working Capital Management for Corporate Clients

This course has been designed for corporate bankers to deal with the increasingly volatile trading conditions that client companies are currently facing due to the post Covid economy, global supply chain blockages and the effects of the War in Ukraine. The principal objectives of the course are to provide delegates (as described below), with a comprehensive overview of the importance and need for the assessment of working capital management in terms of credit risk and business analysis.

We will review the importance of effective working capital management for the safeguarding of good liquidity in any client business and how company management action needs to be monitored and controlled in terms of effective working capital management.

Ultimately, we will be assess how working capital management will impact on the ability of the target, client company to generate free cash flow in order to a) honour its debt service and b) to increase its DCF valuation

We will cover areas that are posing particular financing difficulties to corporate clients because of post supply chain blockages exacerbated by the war in Ukraine, particularly in the food and agribusiness industry. 

In response to these current problem areas this course will focus on the following areas:

• Reviewing the importance of liquidity management for both the going concern
• Assessing how poor liquidity and working capital management can affect the ability of the client to honour its debt service.
• Reviewing different methods of calculating liquidity from the cash flow and balance sheet
• Reviewing why EBITDA does not spell cash flow and the importance of the Debt Service Ratio in understanding the client’s debt capacity and ability to repay
• Understanding how to assess the overall quality of Working Capital management and how management in Egypt need to plan for changes in liquidity volatility in a volatile business and trading environment.
• Reviewing Industry benchmarks for levels of working capital in different industries and assessing how working capital management can improve company performance and DSR
• The importance of assessing each client’s Business model including the inherent scope of the business’ seasonality and working capital needs
• Assessment of working capital management in the current business climate with the ongoing COVID crisis and War in Ukraine as a central example.