Forecasting and Analyzing Cash Flow

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

Per participant

USD 4,900

Fees + VAT as applicable

Tax Registration Number : 100239834300003

Discount Plans & Cancellations Policy