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.
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