This is part four of a four part Back to Basics in Corporate Finance series. This may come as a surprise, but cash and profit are not the same thing.  Companies can have good cash flow and not be profitable, as well as show profit while having negative cash flow.  Having enough cash on hand is critical to a company’s long term success, which is why we always say, “cash is king”.

Managers would be wise to focus as much attention on their balance sheet and working capital as they do on the income statement.  This is where they can make a big impact and greatly affect the vitality of their business. 

During this module, you work through exercises using different, well-known companies, showing how each managed its operations and the three key areas of working capital – for better or for worse - to greatly affect their business and cash flow.

Expect to learn:

• What metrics within working capital investors look at to make assumptions about your business.
• The two metrics that drive profit.
• The benefits of a financially transparent organization.

When all is said and done, it’s the people in an organization that drive the business.  Being educated on your company numbers and having financial transparency will keep you focused and motivated on the things that really matter to your businesses success.