Working Capital

Working Capital is an indicator of the short-term financial position of your organization and a measure of efficiency. The goals of working capital management are to ensure continuous cash flow and liquidity.

Adequate working capital management is a basis for investments and supports the ambition to grow in good times while creating financial independence in times of economic downturn and crisis.

Optimizing is a cross-functional matter: it is essential to align business objectives and target settings across departments. A focus on operative components of current assets, such as accounts payable, inventory, and accounts receivable, is key to optimization.

Our approach tackles business processes to improve the cash-to-cash cycle.

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On demand webinar:
How to tackle your working capital

In the last few months, we have seen how important liquidity is: as the COVID-19 crisis hit, a threat to the survival of many companies surfaced within the first few weeks. More than ever, this shows the importance of working capital management as an existential element to the financial health of your business. Watch our on-demand webinar on working capital optimization.

Does this sound familiar?

My Days Sales Outstanding (DSO) are increasing, causing necessity for external financing.

My inventory levels are high, but I have medium to low product availability.

I have done many Working Capital projects, but without sustainable results.

Your Days Payable Outstanding (DPO) is low and you don’t have sufficient cash balance to commit to payment obligations.​
Specific department goals jeopardize efficient working capital management.

Problems we encounter often.

Does this sound familiar?

  • My Days Sales Outstanding (DSO) are increasing, causing necessity for external financing.
  • My inventory levels are high, but I have medium to low product availability.
  • Your Days Payable Outstanding (DPO) is low and you don’t have sufficient cash balance to commit to payment obligations.
  • I have done many projects, but without sustainable results.
  • Specific department goals jeopardize efficient working capital management.

Benefits

Up to 15% payables ratio to sales increases

Up to 45% Reduction of inventory position

Up to 4% decrease in the receivables ratio to sales

Up to 100% accelerated collection and reduction of slow-movers, non-movers, and untouched stock

How it works

We tackle the root causes standing in the way of optimized working capital and inventory management, optimizing structure and inventory position to improve availability while reducing the total inventory amount at the same time. In accounts payable, we generate a better account payable turnover ratio and payment terms, ensuring creditworthiness and good supplier relationships on the side of accounts payable. Reducing the necessity for external financing at accounts receivable by improving collection leads to increased profitability, company value, and credit rating.

By combining management consulting with our AIO platform, we offer a modularized consulting approach delivering results from day one. Quick wins with our cash task force or sustainable results? The choice is yours.

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Our Working Capital Solutions

Inventory Management

Optimize strucure and position of inventory to improve availability, while reducing total inventory amount at the same time.

Accounts
Payable

Generate better accounts payable turnover ratio and payment terms, ensuring creditworthiness and good supplier relations.

Accounts Receivable

Reduce the need for external financing by improving collection, leading to increased profitability.

Optimize your Working Capital.
Get in touch today.

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