Forecasting and Analyzing Cash Flow
Forecasting and Analyzing Cash Flow
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 TYPE
- COURSE NUMBER
- DURATION 5 days
- COURSE ACCREDITED BY NASBA
You will learn how 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
Course Outline
Modules:
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
Cash flow and liquidity analysis
- External users of cash flow information
- Ratios and bankruptcy
- Internal users of cash flow information
- Capital expenditure evaluation
- Cash flow related ratios
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
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In The Classroom
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Live, Online
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Private Team Training
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Indiviual Private Session
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