Working capital has taken centre stage in many corporate treasuries not least because treasurers and their CFOs would wish to avoid borrowing further in the current elevated rate environment. So the focus and priority for many treasurers and financial planning colleagues is on managing the company’s short-term assets for liquidity, whilst limiting liabilities. Even though inflation is stabilising in many markets, costs in supply chains for specific commodities are significantly elevated on previous prices. Having very detailed analysis on costs gives the treasurer greater visibility over the working capital needs of specific business units. Through strategic partnering with business managers, treasurers together can work on optimal working capital positions, identifying assets on the balance sheet to provide liquidity when and where needed in the business. In this session treasurers discuss the challenges in working capital optimisation in current markets and the techniques around bolstering working capital positions including the optimisation of cash conversion cycles and the use of payables, receivables and inventory financing in specific scenarios in the business.

With ongoing uncertainty in global markets in respect of both inflation and interest rates, treasurers and their banking partners have together been working to develop treasury solutions to mitigate financial risks. From fixed rate cash accounts, to hedging products in fx and commodities, working capital solutions, and short term cash investment yields, the focus is on optimising cash balances amid rate uncertainty and elevated capital costs. If the medium term outlook for the economy improves as expected through 2025/6 in the US and Europe, with improved GDP growth, falling inflation and rate cuts, banks and treasurers might review their risk relationships and develop a different approach to cash management and liquidity solutions. In this session banks assess how they are working with clients to develop solutions through this period of rate uncertainty, and how solutions might evolve to reflect the changing economy.