Working Capital Optimization
Adequate optimization of working capital will increase liquidity, thereby ensuring short- and medium-term cash flows.
Global Value Consulting proposes to evaluate the different basic components that make up working capital and suggest corrective measures to optimize Working Capital. Among the areas to analyze and measures to propose are:
Reduction of accounts receivable:
The credit portfolio is evaluated, the level of credit risk is determined, a methodology is proposed to reduce street days (time to collect invoices issued), the structure of the collection area is evaluated and a collection plan and incentives are designed that will allow reducing collection times.
Inventory analysis:
Rotation, obsolescence, profitability, unit costs, losses, shortages and adjustments due to differences in inventory taking are evaluated.
In the case of our importing clients, the Import Cost Absorption Model that the company has will also be evaluated, in order to determine if the valuation of the imported goods was done correctly. If the importing company does not have an import cost absorption model, Global Value Consulting can build a custom one.
Analysis of short-term liabilities:
Analysis of bank debts and short-term maturity, evaluation of the number of banking entities, lines and credit in force as well as current COMEX operations. It is proposed to consolidate debts in fewer banks, renegotiate debts and rates with banks and obtain syndicated loans with a better rate.