Analysis and management of liquidity

Step 1: Understanding the nature of corporate liquidity

• Components of the company's overall liquidity.
• Operating liquidity as a driver of internal financing power.
• Sources of operating liquidity.
• Working capital as a simplified view of net current assets.
• Relationships and interactions between liquidity and profitability.

Step 2: Scrutinize liquidity statements in reporting

• Liquidity plan: Structure, informative value, pitfalls and challenges.
• P&L: Where is the money?
• Balance sheet: Source and use of funds in the field of tension of the balance sheet date.

Step 3: Calculate the cash flow statement and determine the optimal cash flow

• Definition: Cash flow and cash flow statement as synonyms.
• Content, structure, calculation methodology.
• Significance and pitfalls.
• Free cash flow: use and meaning.
• The optimal cash flow as a performance indicator.
• IFRS versus HGB in the cash flow statement.
• Special features of the cash flow statement.
• informative value of the cash flow statement.
• Case Study: Analyzing a cash flow statement using a company example.
• Case Study: Preparation of a cash flow statement, various case studies.

Step 4: Analyze the company's liquidity

• Internal influencing factors: The nature of the core business, life cycles of companies.
• External influencing factors: political, economic, social and technological framework conditions and the role of competition.
• Liquidity analysis with key figures: Calculation and significance.
• Case study: Liquidity analysis using a company example.
• Case Study: The company without a name - how would you decide?

Step 5: Implement options for optimizing operating liquidity

• Working capital - warning signals and early risk detection.
• Working capital management as a cross-divisional management task.
• Process phases and options for action.
• Motivation, target agreement and control.