In a situation where debt financing is limited, a company may look to optimise its working capital and operating cash flow in order to reduce financial expenses and provide an alternative to attracting a short-term financing. If properly implemented, these measures can dramatically cut financial costs by reducing the carrying amount of inventory, managing accounts payable and receivable more efficiently, and reducing unreasonable cash balances.
Business recovery
Business recovery programmes are often designed solely as a result of financial problems without proper and thorough planning, or are implemented in a hurry in such a way that wastes significant resources and still does not achieve the desired result.
KPMG specialists can help you:
- find new opportunities to intensify cash flows
- achieve real cost savings in implementing new initiatives
- avoid mistakes made by other companies in the industry.
Yuriy Fedoriv
Partner, Advisory, Head of Turnaround and Restructuring, Head of Financial Services
KPMG in Ukraine
Optimising working capital
What’s on your mind?
- Lack of cash to finance investments and debt service in the context of limited opportunities to attract additional external financing.
- Excessive amounts of funds invested in working capital.
Your questions
- Is the current level of inventory, receivables, and payables adequate for the company?
- How fast is the cash flow process in the company compared to its competitors?
- Is it feasible to free up cash from working capital to finance other expenses without affecting the business?
How can KPMG in Ukraine help you optimise your company’s working capital?
We review the structure and historical dynamics of each of the components of your company’s working capital.
We then benchmark the turnover rates for the working capital components against industry averages and estimate the target turnover rate for each component.
Based on the results of our review, as well as studies of the working capital management process, we determine the realistic potential for reducing working capital and freeing up cash, and design a detailed optimisation programme.
Cash management
What’s on your mind?
- Lack of cash to finance investments and debt service in the face of limited opportunities to attract additional external financing.
- Lack of a centralised approach to making payments in the company.
Your questions
- Is the current approach to cash management suitable for the company?
- Is it possible to free up cash to finance other expenses without affecting the business?
How can KPMG in Ukraine help you optimise your cash management?
We undertake a comprehensive analysis of the company’s cash receipts and payments. Following our review, we determine the optimal amount of cash balance and develop a unified payment management system, focusing on minimising the level of cash in the business.
We then analyse the means of cash control and provide our recommendations for optimising business processes and cash management regulations.
We finally review the methodology for cash flow planning and reporting, offering improvements where applicable.