Working capital analysis powerpoint presentation slides

“A man who does not plan long ahead will find trouble right at his door.” – Confucius.

It teaches us all to plan better for the future. One of the things that all businesses must include in the planning stage is analyzing and managing net working capital. For those unaware, net working capital is the capital of a business calculated by deducting current liabilities from the assets and used in daily operations.

Looking for more? Check out the Financial Snapshot with Current Working Capital here.

Managing net working capital is crucial as it lets a business owner know about its liquidity and confirms that the company can take care of short-term obligations without complications. Ideally, net working capital is zero or higher than that. It must not be negative. Net working capital differs from gross working capital, which includes current liabilities. Such liabilities include short-term loans, creditors, dividends payable, etc.

Current liabilities include trade payables or creditors, short-term loans, dividends payable, and long-term debts maturing within a year. You must deduct items in the current assets or gross working capital to determine the exact net working capital.

Also, look at the Working Capital Management Defines Process Issues here.

Template 1: Kinds of Working Capital

If you are new to the financial world, you should know about different kinds of working capital. This slide by SlideTeam will help you get that information. Use this presentation to understand the various types of working capital based on time and concept. The former includes seasonal, special, permanent, or temporary working capital, while the latter includes gross, regular, reserve, and net working capital. Gaining this knowledge will help you better categorize working capital.

Template 2: Working Capital Components

Like everything around us, working capital has many components; learning about them is essential. The components vary from account management to production, quality to procurement, and order management to invoicing and billing. You can add or remove any element in the above slide per your requirements. It's simpler and takes a few seconds!

Template 3: Working Capital Elements

This PPT Template explains working capital elements. It includes a company's current liabilities, such as short-term loans and accounts payable, and current assets, such as marketable securities and accounts receivable.

Template 4: Working Capital Cycle

When you are on the path to learning about working capital, you need to understand how the cycle works. This PPT Slide helps you with this by explaining the simple cycle, which has different elements like using cash to buy raw materials, completing the production, preparing the list of account receivables, and going for collection, which leads to getting cash again. The cycle repeats itself endlessly.

Template 5: Working Capital Optimization

When managing working capital, you must also consider working capital optimization. For that, you need to focus on essentials like operational working capital, create a strategy, ensure better visibility and control, and consider additional factors like supply chain financing and treasury management. The creative slide above deftly covers all these vital elements.

Template 6: Working Capital Description

Working capital, or need to train someone new on working capital? Use this PowerPoint Presentation to learn the working capital description. The working capital means current liabilities minus current assets. Examples of current assets are accounts receivables or inventories, while examples of current liabilities include accounts payable, accrued liabilities, etc.

Template 7: Working Capital Management

Working Capital Management means totaling your inventory, account receivables, and other current assets minus current liabilities like account payables, short-term debts, etc. Employ this PPT Layout to prepare a detailed list of all assets and liabilities. This will help you understand your company's working capital while ensuring you get all the benefits.

Template 8: Yearly Net Working Capital Table

A simple net working capital analysis approach includes creating a yearly net working capital table. This PPT Framework helps you understand all assets, liabilities, and working capital available to you from one year to another. This will help in long-term decision-making, financial planning, or yearly budgets.

Template 9: Monthly Working Capital Calculation Table

To stay updated, you must calculate your working capital once a month. The above slide can help you with this. It lists all the current assets, liabilities, and working capital for each month from January to December. Feel free to change the elements, the numbers, and the months at your convenience.

Template 10: Working Capital Modelling Chart

This slide can be your go-to option if you are looking for a working capital modeling chart. It lets you focus on trade debtors and' trade creditors' accounts and easily make working capital adjustments. Use this presentation to include the number of debtor and creditor days and focus on three quarters simultaneously.

Template 11: Working Capital Calculation Steps Chart

This PPT Slide describes the detailed process of working capital computation. The entire process is captured in four simple steps. The first is where you calculate all the accounts receivable, and the second is when you calculate the inventory startup balance. The third is calculating the accounts payable, and the final and fourth step is determining the working capital a business needs. All the stages include the sales and the cost of goods or services a company sells.

Final Words

Designed to entirely focus on net working capital, these slides by SlideTeam cover all essential elements like calculation, optimization, and management of working capital. They also focus on different types of working capital and their components and elements. Download these content-rich and 100% editable slides in an instant. Try it and see!

Want more assistance regarding working capital management? Explore the Accounts Payable Dashboard with Working Capital and Cash Conversion.