Forecasting, Analyses and Cash Flow Management Training Course

Cash flow is critical for the success and sustainability of a business. In this course, you will learn cash flow and working capital management to maximize the use of cash. You will also learn how to prepare cash flow statements under direct and indirect methods in addition to accurate cash flow forecasting and analysis techniques.

Day One

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 noncash transactions

Day Two

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

Day Three

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

Day Four

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 pay-out