Cash Flow Management, Analysis, Modelling and Forecasting Course

Course 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 intensive 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
Course Content
Introduction to Cash Flow Statement
• 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
Components of Financial Statement
• Balance Sheet
• Income & Expenditure Account
• Cash Flow Statement
• Statement of Changes in Equity
• Notes to Financial Statements
• Case Study- Cash Flow Statement – Walmart
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)
Importance of ERP in Cash Flow Planning
• Sales
• Bill of material
• Material Management
• Procurement
• Production
• Finance
Cash Flow Forecast
• Importance of Cash Flow Forecast
• Establish assumptions based on Current Conditions
• Estimate Cash Inflow & Outflows
• Identify Short Term Investments
• Exploring Sources of Funds
• Controlling Application of Funds
• Best Practices in Cash Management
Liquidity v/s Solvency
• Difference between Liquidity & Solvency
• Understanding Solvency Ratios
• Shareholder Equity Ratio
• Debt Equity Ratio
• Interest Coverage
Capital Expenditure
• Capital Investment Appraisal
• Return on Investment
• Payback period
• Net present Value
• Internal Rate of Return
• Lease or Buy Decisions
Cost of Capital
• Borrowing Requirements
• Long term V/s Short Term Borrowing
• Equity or Debt Capital?
• Dividend Policy
• Cost of Capital
• Weighted Average Cost of Capital

Methodology
The training methodology integrates lectures, interactive discussions, collaborative group exercises, and illustrative examples. Participants will acquire a blend of theoretical insights and hands-on practical experience, emphasizing the application of learned techniques. This approach ensures that attendees return to their professional environments equipped with both the competence and self-assurance to effectively implement the acquired skills in their responsibilities.
DATE:
1ST BATCH: 11th – 14th Feb, 2025
2ND BATCH: 15th – 18th July, 2025