Companies that experience difficulties accessing finance, present outstanding credits for forthcoming months or fail to reach estimates or comply with covenants due to the drop in consumption, probably need a working capital improvement program. Efficient working capital management permits managing the liquidity of companies both in the short and long-term, obtaining visibility for future liquidity requirements, liquidity in the bearish cycle and flexibility with the parties concerned, especially with financing providers.
At PwC we have a team of experts in the efficient management of accounts payable, accounts receivable and inventory and the implementation of cash generation cultures in complex organisations. Our approach consists of carrying out a diagnostic study of working capital management that quantifies potential improvements through an internal and external analysis, designing a sustainable management model that acts simultaneously over the organisation, people and systems of the company and providing support in the implementation of such model.
Symptoms that represent the need to consider a working capital improvement program include: