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 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 or forecast of a company’s future financial position and is the main planning component of financial management within a company.

This Zoe Course will provide participants with a comprehensive overview of Cash Flow Management, Analysis, Modelling and Forecasting. In this course, participants will practise and use Cash forecasting models which are generally organised along with short, medium and longer timeframes.

These are categorised 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 based on the underlying business needs and what view management requires of upcoming cash positions.

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

TRAINING METHODOLOGY

This collaborative Cash Flow Management, Analysis, Modelling and Forecasting Course, will comprise the following training methods:

• Lectures
• Seminars & Presentations
• Group Discussions
• Assignments
• Case Studies & Functional Exercises

Zoe Talent Solutions follows the ‘Do-Review-Learn-Apply’ model.

Organisational Benefits

On successful completion of Cash Flow Management, Analysis, Modelling and Forecasting Course, participants shall be able to benefit their organization in the following ways:

• Assess and know the quality and sustainability of the cash flow drivers
• Guidelines and strategies for designing cash flow forecasts
• Compute debt capacity and debt service capability
• Have an understanding of the importance of cash, how to formulate a cash budget, how to control cash flows and assess performance, and how to improve the cash flow by using debtor management
• Learn various practices that assist in overcoming your debt and recover the cash flow situation
• Study more about forecasting sales and traffic to manage your flow

Personal Benefits

Successful completion of Cash Flow Management, Analysis, Modelling and Forecasting Course, shall benefit participants in the following ways:

• Acquire the relevant skills and industry knowledge to take their career to the next level
• Get the essential knowledge that is necessary to manage cash flow
• Classify the key cash flow drivers in a business
• Practise and apply a structured approach to setting assumptions
• Align debt structure with forecast cash flows
• Recognise the benefits and limitations of cash flow forecasting
• Explain the cash flow forecasts and debt service in the credit proposal

WHO SHOULD ATTEND?

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 professionals in a credit risk analysis or relationship management position, or anyone involved in the assessment of counterparty risk from an underwriting perspective or trade debtor exposure.

COURSE OUTLINE

Module 1: 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

Module 2: 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

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 Inflow & 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 & 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 Debt Capital?
• Dividend Policy
• Cost of Capital
• Weighted Average Cost of Capital

Module 9: Case Studies

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