Working Capital Management

Zobrazit stránku: Česky

Businesses face ever increasing pressure on costs and financing requirements as a result of intensified competition on globalised markets. When trying to attain greater efficiency, it is important not to focus exclusively on income and expense items, but to also take into account the capital structure, whose improvement can free up valuable financial resources.

Active working capital management is an extremely effective way to increase enterprise value. Optimising working capital results in a rapid release of liquid resources and contributes to an improvement in free cash flow and to a permanent reduction in inventory and capital costs, thereby increasing liquidity for strategic investment and debt reduction. Process optimisation then helps increase profitability.

The fundamental principles of working capital management are reducing the capital employed and improving efficiency in the areas of receivables, inventories, and payables.

 

Typical problems and Working capital management


The practical implementation of this system is, however, a challenging task due to conflicts inherent in cross-functional and cross-sectoral issues on the one hand and the high complexity of each optimisation measure on the other.  PwC’ experts have implemented working capital management systems in many Czech and international companies across various industries. Make use of our experience and of our analysis of best practice approaches!


Proven and tested approach of PwC

Phase 1 – Determination of potential

  • External and internal benchmarking using best practice analysis
  • Determination of working capital optimisation potential
  • Project definition

Objective: Determination of potential, definition of costs/benefits


Phase 2 – Development of a concept

  • Definition or normative processes and principles and measures required for implementation
  • Identification of quick wins
  • Preparation of an implementation plan

Objective: Preparation of a concept leading towards the realisation of potential


Phase 3 – Implementation

  • Determination and implementation of normative processes and principles
  • Project management, ensuring and monitoring of progress
  • Initialisation of supportive and corrective measures and allocation of the necessary resources

Objective: Release of capital employed and better efficiency


Information materials on working capital management