Working Captial Certification
About Working Captial
Working capital, also known as net working capital, is the difference between a company's current assets and its current liabilities. It is a measure of a company's liquidity and ability to meet its short-term obligations. A positive working capital indicates that a company has enough current assets to cover its short-term liabilities, while a negative working capital means that a company may struggle to meet its short-term financial obligations.
Working capital is calculated by subtracting current liabilities from current assets. Current assets include cash, accounts receivable, and inventory, while current liabilities include accounts payable and short-term debt. A company with a positive working capital is said to be in a strong financial position, while a company with a negative working capital may be at risk of financial difficulties.
Working capital management is the process of managing a company's working capital, which is crucial to ensure that a company has sufficient liquidity to meet its short-term obligations and take advantage of new opportunities. It involves managing the balance between a company's short-term assets and its short-term liabilities.
In summary, Working capital, also known as net working capital, is the difference between a company's current assets and its current liabilities, it is a measure of a company's liquidity and ability to meet its short-term obligations. Working capital management is the process of managing a company's working capital, which is crucial to ensure that a company has sufficient liquidity to meet its short-term obligations and take advantage of new opportunities.
Who should take the Working Captial Certification exam?
Working Capital course is suitable for finance and accounting professionals, business owners, and executives who want to learn how to effectively manage the short-term financial resources of a company. The course is also suitable for those who want to improve their understanding of the principles and practices of working capital management, including cash management, accounts receivable management, and accounts payable management.
Working Captial Certification Course Outline
The following are common topics that may be covered in a course on Working Capital:
Introduction to working capital, including the definition of working capital, its purpose, and how it is calculated.
Components of working capital, including current assets and current liabilities, and how they are used to determine a company's working capital position.
Working Capital ratios, including the current ratio, quick ratio, and cash conversion cycle, and how they are used to evaluate a company's liquidity and efficiency.
Working Capital management, including how to manage and optimize a company's working capital position, including strategies for managing cash, accounts receivable, inventory, and accounts payable.
Financing working capital, including short-term financing options such as lines of credit, trade credit, and factoring, and how to use these options to manage working capital.
Working Capital management in different industries, including how working capital management practices vary across different industries, such as retail, manufacturing, and healthcare.
Global working capital management, including how to manage working capital in a global context, including currency risk and cross-border transactions.
Working capital and financial statements, including how working capital is reflected in financial statements such as the balance sheet and the statement of cash flows.
Working capital and operational performance, including how working capital management can impact operational performance, such as inventory turnover and return on assets.
Hands-on practice and project-based learning, including analyzing and interpreting working capital ratios, managing cash and other components of working capital, and evaluating different financing options for working capital.