• Business Finance
    • Working capital

Cash Flow Academy: Cash flow forecasting

  • Article

HSBC have worked in partnership with KPMG to deliver our Cash Flow Academy series to support businesses through these uncertain and volatile times. This collection of bite-sized tutorial videos has been created to help you focus and be more proactive in your cash management position.

In this two-part module, Nathan McCarthy, Director in the Cash and Working Capital Team at KPMG UK, takes you through the core principles of effective working capital management – highlighting a range of measures your business can take across sales, purchasing and stock cycles to release cash.

Firstly, Nathan explores what working capital is and three key metrics you can use to analyse your working capital: day sales outstanding (DSO), day payables outstanding (DPO) and days inventory outstanding (DIO).

Following on from part 1, Nathan walks you through the three primary trade working capital cycles: order to cash (OTC), purchase to pay (PIP) and forecast to deliver (FID).

Video

Previous video: Cash flow forecasting

Angela Young, Associate Director in the Cash and Working Capital Team at KPMG in the UK, provides an introduction to cash flow forecasting.

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