Workshop on Forecasting and Analysing Cash Flow

Cash is King!  Since the dawn of the new century, we have seen turbulent change in global markets and unprecedented volatility in commodity prices. Industries like the oil and gas sector have faced a rapid decline in output prices and face enormous pressure on their ability to maintain profit, cash flow and shareholder value. The ability to plan and manage business cash flow has never been more critical for the ability of the enterprise to survive and flourish.

This hands-on cash flow training course will focus on practical financial skills directly relevant for business cash flow management and optimisation; using powerful Excel based modelling tools delegates will build a range of functional skills, tools, and techniques with which to plan, manage and improve their organisations cash flow.

Course Objectives

By the end of the course, participants should be able to:

• Analyse the key drivers of business cash flow.
• Provide practical advice on working capital optimisation.
• Use effective tools to produce reliable forecasts.
• Advise on capital investment appraisal decisions.
• Build powerful cash flow forecasting models.

Duration:       5 Days

Who Should Attend

This training course will be of benefit to all staff involved in any of the many functions that have an influence on the organisation’s cash flows. The principles and practical techniques will be relevant to not only finance team members, but those from other key functional areas, including:

• Cost and management accountants
• Treasury department staff
• Managers and budget holders
• Procurement and supply chain professionals
• Receivables and payables team members

Course Content

Day One: Business Finance Fundamentals

• Identifying and balancing stakeholder needs
• Financial statements - purpose and structure
• Measuring financial performance and strength
• The vital difference between profit and cash flow
• Identifying the drivers of business cash flow
• Cash flow ratio analysis and interpretation

Day Two: Analysing and Improving Operating Cash Flow

• Understanding cost behaviour
• Analysing the cost-volume-profit relationship
• Mastering the principles of gross margin and break-even
• Components and mechanics of the working capital cycle
• Analysing and optimising working capital
• Principles of cash optimisation

Day Three: Analysing Investment and Funding Cash Flows

• Operating a capital investment budget system
• Principles of capital investment decision-making
• Mastering discounted cash flow (DCF) analysis
• Sources and cost of business funding
• Funding strategy and optimal capital structure
• Analysing the impact of dividend strategy

Day Four: Fundamentals of Forecasting and Modelling

• Analysing time series sales data to inform forecasts.
• Using Excel statistical analysis tools
• Moving average, linear regression and exponential smoothing methods
• Analysing and forecasting operational costs
• Minimising forecast error and bias
• Principles and best practice in financial modelling

Day Five: Financial Models for Cash Flow Forecasting

• Direct and indirect cash flow forecasts
• Steps in building a cash flow forecast model.
• Using Excel to build the financial model.
• Applying sensitivity analysis methods to the model
• Analysing the impact of risk on cash flow

Expanding the model to include other key measures.

General Notes

• This course is delivered by our seasoned trainers who have vast experience as expert professionals in the respective fields of practice. The course is taught through a mix of practical activities, theory, group work and case studies.
• Training manuals and additional reference materials are provided to the participants.
• Upon successful completion of this course, participants will be issued with a certificate.