Cash Flow Management Strategies

Objective:

By the end of this Cash Flow Management training, participants will:

• Understand the principles and significance of cash flow analysis
• Enhance skills in analyzing and interpreting cash flow statements
• Understand the tools & techniques required to forecast the key cash flow drivers
• Evaluate the quality and sustainability of the company’s debt capacity and debt servicing capability
• Apply effective working capital optimization strategies
• Implement effective capital investment evaluation and decision making
• Devise an optimal business funding strategy
• Prepare realistic cash flow forecasts using financial modeling

Content:

Introduction to Cash Flow Management

• Understanding the importance of cash flow management
• Fundamentals of cash flow and working capital
• Principles of business accounting and financial statements
• How profit is different from cash flow?
• Analysis of cash flow statement
• The drivers of cash flow, liquidity and solvency

Significance of Working Capital

• Cash flow and working capital
• Recognizing the working capital cycle
• Techniques to improve inventories and accounts receivable management
• Key cash flow and working capital management ratios
• Improving efficiency of the cash cycle
• Enhancing financial systems to improve cash flow

Enhancing Operating Cash Flows

• Significance of operating cash flow
• Cost behavior and cost-volume-profit (CVP) analysis
• What drives profits and shareholder value
• Improving return on investment
• Boosting asset management efficiency

Sources of Finance and Capital Budgeting

• Meaning, nature, and significance of business finance
• Sources of business finance
• Analyzing and managing capital structure
• Calculating the cost of capital
• Key principles of capital budgeting
• Capital investment decision-making using the cash flow method
• Discounted cash flow analysis

Techniques of Cash Flow Forecasting

• Methods for managing cash resources
• Cash flow forecasting techniques
• Risk management approach to cash flow forecasting
• Techniques for managing risk
• Sensitivity analysis of cash flow forecasts
• Best practices in cash management