Course Objectives
Forecasting and Analyzing Cash Flow
Course Methodology
This course uses hands-on applications of cash flow analysis in Excel, in addition to demonstrating theoretical core topics. The course also features real-life case studies and presentations by participants.
Course Objectives
By the end of the course, participants will be able to:- Interpret the relationships between cash flow statements, income statements and balance sheets
- Recognize the importance and elements of an organization's cash flow
- Prepare cash flow statements using direct and indirect methods
- Describe the impact of working capital management on cash flow
- Analyze liquidity and the cash flow position of organizations including free cash flow
- Review cash flow key presentation topics
- Apply cash flow forecasting techniques
- Apply ratio analysis related to cash flow
Target Audience
Financial controllers, working capital managers, financial analysts, business development managers, financial managers, management accountants, business analysts, and treasury professionals.
Target Competencies
- Accounting for cash
- Constructing the cash flow statement
- Analyzing historic cash flow statements
- Performing and interpreting cash flow ratios
- Understanding the priority of cash flows
- Identifying cash flow problems
- Explaining the impact of working capital on cash flow
- Preparing cash budgets
Course Outline
- Relationships between financial statements
- Income statements
- Balance sheets
- Cash flow statements
- Why cash flow differs from profits
- Presentation of cash flow
- Presentation fundamentals
- Cash and cash equivalents
- Operating cash flow
- Investing cash flow
- Financing cash flow
- Methods in calculating operating cash flow
- Direct versus indirect methods
- Reporting non cash transactions
- Cash flow and working capital management
- Trade-off between liquidity and profitability
- Conservative working capital management
- Aggressive working capital management
- Sources of cash
- Cost of funds
- Use of short term and long term debt
- Working capital optimization
- Cash conversion cycle
- Accounts receivable factoring, pledging and assignment
- Suppliers early payment discount
- Insights about the cash flow statement
- Liquidity and financial flexibility
- Restricted cash and cash equivalent
- Gross versus net cash flow reporting
- Healthy cash flow
- Presentation issues
- Interest income and dividends from debt and equity investments
- Interest expense and taxes paid
- Receivables and bad debts ?
- Forecasting cash flow
- Why to forecast cash flow
- Cash management
- Who is involved
- Investing and financing decisions
- Free cash flow
- Cash flow ratios
- External financing index ratio
- Cash sources component percentages ratio
- Financing policies ratio
- Operating cash index ratio
- Operating cash inflow ratio
- Operating cash outflow ratio
- Long-term debt payment ratio
- Productivity of assets ratio
- Cash flow adequacy ratio
- Reinvestment ratio
- Dividends payout