This lesson focuses on the practical management of cash flows and liquidity in a multinational context.

5.1 Cash Flow Forecasting
Accurate cash flow forecasting is essential for liquidity management. Treasurers forecast inflows and outflows to determine discretionary and non-discretionary cash positions, enabling informed investment and borrowing decisions .

5.2 Working Capital Management
Working capital management involves managing the cash conversion cycle, including receivables, payables, and inventory. Effective management minimises the cost of financing working capital and maximises cash availability .

5.3 Cash Concentration and Notional Pooling
Cash concentration involves sweeping surplus funds from subsidiary accounts into a central account for investment or debt repayment. Notional pooling aggregates balances for interest calculation without physically moving funds, reducing interest costs while maintaining account structures .