80% of executives manage their cash like a plane without instruments.
The result? Barely half of companies survive beyond five years.
Not because of a lack of talent, but because of a lack of METHOD.
In this video, you will learn how to effectively manage your company’s cash flow using a powerful method to move from survival mode to dominance and gain all the keys to mastering your cash.
Some terminology clarifications:
1/ Cash flow
- Definition: all short-term available liquidity (positive bank balances and cash).
- Key indicator for assessing short-term financial health.
2/ DSO – Days Sales Outstanding (average time to collect receivables)
- Definition: indicates the average number of days it takes a company to collect its customer receivables after sale.
- Objective: to measure the effectiveness of customer credit management and collection.
3/ DPO – Days Payable Outstanding
- Definition: average number of days it takes a company to pay its suppliers after receiving invoices.
- Objective: to measure the management of supplier debts.
4/ WCR – Working Capital Requirement
- Definition: amount needed to finance a company’s operating cycle (the difference between customer receipts and supplier payments).
- Simplified formula: WCR = Inventory + Accounts receivable − Accounts payable
5/ KPI — Key Performance Indicator (Key Performance Indicator)
- Definition: a numerical measure used to evaluate the performance of a company or activity against specific objectives.
- Common examples in finance: gross margin, EBITDA, profitability ratio.
Reading time: 11 minutes
