HomeFinance, Accounting & Budgeting CoursesTraining on Cash Flow Management, Analysis, Modelling and Forecasting

Training on Cash Flow Management, Analysis, Modelling and Forecasting

Course Overview

What is Cash Flow Management? Cash flow management is the process and procedure of tracking how much money is coming into and out of your business. This helps you to predict and foresee how much money will be available to your business in the future. It also identifies how much money your business needs to cover debts, like paying employees and suppliers.
What is Cash Flow Analysis? A cash flow analysis determines and establishes a company’s working capital, the amount of money available to run business operations and complete transactions. That is computed as current assets (cash or near-cash assets, like notes receivable) minus current liabilities (liabilities due during the upcoming accounting period).
What is Cashflow Modelling? Cashflow modelling is created, designed and used by financial planners to forecast your future finances. It showcases in real-time how much money you could have in the future and whether you are on the path to achieving your goals.
What is Cash Flow Forecasting? Cash Flow Forecasting is the method of getting an estimate of forecast of a company’s future financial position and is the main planning component of financial management within a company.
This Course will provide participants with a comprehensive overview of Cash Flow Management, Analysis, Modelling and Forecasting. In this course, participants will practice and use cash forecasting models which are generally organized along with short, medium and longer timeframes.
These are categorized into short, medium and longer-term cash flow models. Through this course, participants will be able to make the decision of what model to use on the underlying business needs and what view management requires of upcoming cash positions.

Target Audience

This qualification is aimed at anybody who is working in or looking to work in, a role that involves handling cash flow. Anyone looking for a refresher on or a deep dive into the topic of Cash Flow Management, Analysis, Modelling and Forecasting: Financial professional in a credit risk analysis or relationship management position, or anyone involved in the assessment of counter party risk from an underwriting perspective or trade debtor exposure. 

Course Duration

5Days

Training Objectives

On successful completion of Cash Flow Management, Analysis, Modelling and Forecasting Course, participants shall be able to:

  • Interpret cash flow statements and ratios, and find positive and negative corporate performance
  • Understand why cash flow analysis is more significant than the balance sheet and income statement analysis
  • Assess and evaluate free cash flow and the capacity of companies to meet their financial commitments
  • Get an overview of the tools required to realistically forecast the key cash flow drivers in a business.
  • Apply a methodical approach to know the key drivers of cash flow in a business, to evaluate the quality and sustainability to ascertain a company’s debt capacity and debt servicing capability.

Training Outline

Module 1: Introduction of Cash Flow Statements

  • Understanding Cash Flow movements 
  • Understanding the importance of Cash Flow Management
  • Capital Structure
  • Working Capital Management to optimize Cash Flow
  • Capital Investment Decisions
  • Direct versus Indirect Cash Flow

Module 2: Components of Financial Statement

  • Balance Sheet
  • Income and Expenditure Account
  • Cash Flow Statement
  • Statement of Changes in Equity
  • Notes of Financial Statements
  • Case Study – Cash Flow Statement-Walmart
Module 3: Understanding Working Capital Ratios
  • Significance of Working Capital Ratios
  • How to determine the Efficiency of Working Capital Management
  • Current Ratio
  • Liquid Asset Ratio
  • Inventory Turnover Ratio
  • Debtors Turnover Ratio
  • Operating Cycle
  • Cash Conversion Cycle (CCC)
Module 4: Importance of ERP in Cash Flow Planning
  • Sales
  • Bill of material
  • Material Management
  • Procurement
  • Production
  • Finance 

Module 5: Cash Flow Forecast

  • Importance of Cash Flow Forecast
  • Establish assumptions based on Current Conditions
  • Estimate Cash Flow and Outflows
  • Identify Short Term Investments
  • Exploring Sources of Funds
  • Controlling Application of Funds
  • Best Practices in Cash Management

Module 6: Liquidity v/s Solvency

  • Difference between Liquidity and Solvency
  • Understanding Solvency Ratios
  • Shareholder Equity Ratio
  • Debt Equity Ratio
  • Interest Coverage
Module 7: Capital Expenditure
  • Capital Investment Appraisal
  • Return on Investment
  • Payback period
  • Net present Value
  • Internal Rate of Return
  • Lease or Buy Decisions

Module 8: Cost of Capital

  • Borrowing Requirements
  • Long term v/s Short Term Borrowing
  • Equity or Debit Capital
  • Dividend Policy
  • Cost of Capital
  • Weighted Average Cost of Capital

Module 9: Case Studies

  • Preparation of Direct and Indirect Cash Flow Statements
  • Interpretation of Financial Statements of a Listed Company

Training Approach

The instructor-led trainings are delivered using a blended learning approach and comprise of presentations, guided sessions of practical exercises, web-based tutorial and group work. Our facilitators are seasoned industry experts with years of experience, working as professional and trainers in these fields. All facilitation and course materials will be offered in English.

Accreditation

Upon successful completion of this training, participants will be issued with a PROTRAIN institute certificate

Tailor-Made

This training can be customized to suit the needs of your institution upon request.

TRAINING DATE

VENUE

Register, Physical or Online Training

14/09/2024 to
19/09/2024

Nakuru

14/09/2024 to
19/09/2024

Nairobi

14/09/2024 to
19/09/2024

Nairobi

14/09/2024 to
19/09/2024

Nairobi