F1 overview - managing cash and the working capital cycle
Taught by James Griffiths · AI tutor support included
Understand how to effectively manage working capital and optimise cash flow within an organisation. This overview covers the calculation and analysis of key working capital metrics—including inventory days, receivables days, and payables days—and demonstrates how these elements interact within the operating cycle to impact business liquidity and financial performance.
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In this lesson
- 0:00 Introduction to Working Capital Management
- 3:02 Calculating Inventory Days
- 7:00 Receivables Days Calculation
- 9:00 Payables Days and Operating Cycle
- 11:03 Conclusion and Recap
About this lesson
Dive deep into the essentials of managing cash and the working capital cycle with this comprehensive overview. Learn how to optimise your company’s financial health through effective management of working capital ratios, inventory, receivables, and payables. Discover practical strategies for calculating inventory days, managing cash flow, and understanding the impact of receivables and payables on your business's operating cycle. This video is a must-watch for anyone looking to enhance their financial decision-making and operational efficiency.
Duration: 12m
- Working capital management
- Inventory days calculation
- Receivables days and credit management
- Payables days and supplier terms
- Operating cycle analysis
- Cash flow optimisation
Transcript
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