Working capital efficiency for profitability – Webinar 2026

HRD Corp Claimable Course (T&C applies*)
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Webinar sessions:
Session 1: 9:00am - 12:00pm;
Session 2: 2:00pm - 5:00pm.

Working capital efficiency is critical because it ensures a company has enough liquidity to meet short-term obligations, supports operational sustainability and boosts profitability by freeing up trapped cash. It directly affects the company's ability to pay debts, manage inventory and fund growth without relying on expensive external financing.

Key topics covered:

Introduction to Working Capital Management

• Understand the concept of working capital and its importance
• Identify key drivers of working capital efficiency
• Link working capital management to profitability and liquidity
• Understand the working capital cycle in different industries

Measuring Working Capital Efficiency

Key Performance Indicators:

• Current Ratio = Current Assets / Current Liabilities
• Quick Ratio = (Current Assets Inventory) / Current Liabilities
• Inventory Turnover = Cost of Sales / Average Inventory
• Receivable Days (DSO) = Accounts Receivable / Sales 365
• Payable Days (DPO) = Accounts Payable / Purchases 365

Managing Accounts Receivable 

• Credit policy design
• Customer credit assessment and credit limits
• Payment terms and monitoring receivable aging
• Collection strategies and bad debt indicators
• Improving collection efficiency through automation and einvoicing

Inventory Management for Cash Efficiency 

• Cost of holding inventory
• Economic Order Quantity (EOQ)
• JustinTime (JIT) inventory
• ABC inventory analysis
• Inventory turnover analysis and industry practices

Optimising Accounts Payable

• Supplier payment strategies
• Negotiating payment terms
• Supply chain financing
• Early payment discounts and dynamic discounting
• Maintaining supplier relationships

Working Capital Strategy and Financial Performance 

• Conservative vs aggressive working capital policies
• Impact on liquidity and profitability
• Linking working capital to ROA, ROCE and Free Cash Flow
• Reducing the cash conversion cycle

Presenter:

T Tharmaseelan
Seelan specialises in designing and setting up accounting, internal control, and operational systems. He also performs operational audits and acts as a consultant for a number of groups on financial issues. His working experience includes positions in public accounting firms, a leading hotel in Langkawi and an established manufacturing organisation. He was also attached to a large tax firm for three years. Seelan is actively involved in the development and implementation of financial and management training programmes for various organisations. He has trained accountants and financial advisors in Vietnam, Brunei and Uganda. These programmes have produced excellent feedback.