Practical ways to manage company's healthy cash flow

1. Managing Company’s
Healthy Cash Flow To
Make An Effective
Financial Decision
Presented by M. Nino Mayvi Dian

2. Hey I’m,
M. Nino Mayvi Dian
• 2019-Now | Operations & Finance Director at PT
Mentari Smart Guna
• 2016-2019 | Center Director at EF English Centers for
Adults
• 2015-2016 | Branch Manager at Atalian Global Services
• 2014-2015 | Sr. Sales Manager at PT Shield On Service,
Tbk.
• 2011-2013 | Sr. Sales & Marketing Manager at PT Dihen
Bersama
• 2008-2011 | Regional Manager at Rentokil Initial
Indonesia
• 2007-2008 | Loan Center Manager at HSBC Indonesia
• 2006-2007 | Filling Station Manager at PT Samator Gas
Industri

3. WHY MANAGING COMPANY’S
HEALTHY CASH FLOW IS
IMPORTANT
Cash Flow is the heart of the business, because every business isn’t
going to run without cash flow.
Managing company’s healthy cash flow means the cash flow itself
increases company’s finance immunity from any occurred & future
business challenges.
If you want to make an effective financial decision, it will be relied on
the healthy cash flow

4. The
Importance of
Company’s
Healthy Cash
Flow

5. Operating Revenue Investments Financing
The Importance of
Company’s Healthy Cash
Flow

6. The Importance of
Company’s Healthy Cash
Flow
Meaning of healthy cash flow?
More cash inflows than
outflows
Ability to capture immediately business
opportunities without worrying about working
capital sources

7. The Importance of
Company’s Healthy Cash
Flow
Healthy growth, less debts for financing the
growth
Healthy financial relationship with customers &
suppliers

8. Main Keys to Manage
Company’s
Healthy Cash Flow

9. Main Keys to Manage
Company’s
Healthy Cash Flow
Managing Account
Payables
Managing Account
Receivables

10. Main Keys to Manage
Company’s
Healthy Cash Flow
Managing Expenses
& Debts
Project Costs Control

11. Managing Account Receivables
○ Customer’s Term of
Payments
○ Customer’s Debtor Days
○ Customer’s Credit Limits

12. Managing Account
Payables
● Supplier’s Term of Payments
● Supplier’s Credit Limits

13. Project Costs
Control

14. Managing
Expenses & Debts

15. Benefits of Company’s
Healthy Cash Flow

16. Benefits of Company’s
Healthy Cash Flow
Flexible financial
decisions to cope with
market and business
environment changes
Excellent company’s
financial stability in
volatile conditions

17. Benefits of Company’s
Healthy Cash Flow
Increase company’s
market values &
attract more investors
Higher trust from
customers, suppliers &
investors

18. Actual Obstacles
to Manage
Company’s
Healthy Cash Flow

19. External
Obstacles:
Macro Economic
Conditions
Actual Obstacles to Manage
Company’s
Healthy Cash Flow

20. External
Obstacles:
Market
Competition
Actual Obstacles to Manage
Company’s
Healthy Cash Flow

21. External
Obstacles:
Customer Behavior
Actual Obstacles to Manage
Company’s
Healthy Cash Flow

22. External
Obstacles:
Competitor
Behavior
Actual Obstacles to Manage
Company’s
Healthy Cash Flow

23. External
Obstacles:
Suppliers Availability
& Resources
Scarcity
Actual Obstacles to Manage
Company’s
Healthy Cash Flow

24. Internal
Obstacles:
Human Resources
Capability &
Infrastructures
Actual Obstacles to Manage
Company’s
Healthy Cash Flow

25. Overcome Actual
Obstacles to Manage
Company’s Healthy Cash
Flow

26. ● Macro economic conditions
● Market competition
● Customer’s behavior
● Competitor’s behavior
● Suppliers availability &
Resources scarcity
○ Increase Adaptability in Volatile
Conditions
○ Broaden Market Coverages
○ Expand & Strengthen Financing
Source
○ Cautious & Prudent Finance
Procedures
○ Substitute & expand suppliers
database
External Obstacles How to overcome

27. ● Human resource capability &
infrastructures
○ Human resource & infrastructure
investments
Internal Obstacles How to overcome

28. CASE STUDY
PT “X”, a Manpower
Outsourcing Business
Company

29. CASE STUDY
PT “X”, a Manpower
Outsourcing Business
Company
● PT “X” is a manpower
outsourcing business company
● Gross margins in outsourcing
business market are around 5%
- 7%
● Overhead costs in outsourcing
business market are around 1%-
2% from total invoice values
● Outsourcing business
customer’s debtor days are
around 15 – 30 days

30. Cash Flow
Statement
PT “X”
Example
ARUS KAS DARI KEGIATAN OPERASI
Pembayaran dari pelanggan 1.200.000.000
Rp
Pembayaran gaji & manfaat karyawan alih daya 1.100.000.000
-Rp
Pembayaran Tagihan Supplier 16.000.000
-Rp
Pembayaran operasional & overhead 38.000.000
-Rp
Arus Kas Bersih Dari Kegiatan Operasi 46.000.000
Rp
ARUS KAS DARI KEGIATAN INVESTASI
Akuisisi -
Rp
Arus Kas untuk Aktivitas Investasi -
Rp
ARUS KAS DARI KEGIATAN PENDANAAN
Penambahan Setoran Modal 15.000.000
Rp
Pembayaran Angsuran Hutang 65.000.000
-Rp
Arus Kas untuk Aktivitas Pendanaan 50.000.000
-Rp
KENAIKAN (PENURUNAN) BERSIH KAS & SETARA KAS 4.000.000
-Rp

31. Case Study
From the data given above, could
you identify what items aren’t
supposed to be and should be
improved in the next following
months?

32. Conclusions
Managing Company’s Healthy Cash Flow to
Make an Effective Financial Decision

33. Company’s healthy cash flow
is needed for increasing
company’s financial capability
to capture more business
opportunities and its market
value without jeopardize its
own finance fundamentals
Managing
Company’s
Healthy Cash
Flow to Make
an Effective
Financial
Decision

34. LIVE DISCUSSION TIME!

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