Cash Flow Management and Analysis

Course Overview: “Cash is King.” This course is dedicated to the most critical aspect of business survival: Liquidity. It teaches participants how to forecast cash flows, manage the working capital cycle, and ensure the organization has sufficient liquidity to meet its obligations and fund growth.

Course Objectives:

• Differentiate between Profit and Cash Flow.
• Create accurate short-term and long-term cash flow forecasts.
• Optimize the Cash Conversion Cycle (CCC).
• Identify “Cash Traps” within the business.
• Use cash flow ratios to assess financial health.

Target Audience:

• Treasury Managers and Cashiering Leads.
• Credit Managers and Accounts Receivable/Payable Managers.
• General Managers and Entrepreneurs.

Course Outline:

Day 1: Principles of Cash Flow Management

• Profit vs. Cash: Why profitable companies fail.
• The Cash Flow Cycle: From inventory to collection.
• Components of the Statement of Cash Flows.
• Free Cash Flow (FCF) and its importance.

Day 2: Cash Flow Forecasting

• Direct vs. Indirect methods of forecasting.
• Short-term Cash Positioning (Daily/Weekly).
• Long-term Liquidity Planning.
• Scenario Analysis and Stress Testing cash flows.

Day 3: Working Capital Optimization

• Managing Accounts Receivable: Credit policies and collections.
• Managing Accounts Payable: Negotiation and timing.
• Inventory Management: Balancing stock levels and cash.
• The impact of growth on Working Capital.

Day 4: Funding and Liquidity Management

• Managing Bank Relationships and Credit Lines.
• Short-term investment of surplus cash.
• Managing Foreign Exchange (FX) risk in cash flows.
• Debt Service Coverage Ratios (DSCR).

Day 5: Analysis and Strategic Control

• Cash Flow Ratios (Operating Cash Flow Ratio, Cash Margin).
• Identifying early warning signs of liquidity crises.
• Improving the “Quality of Earnings” through cash flow analysis.
• Workshop: Creating a 13-week Rolling Cash Forecast.