Cash Flow & Working Capital Management

Course details

By the end of this course you should be able to:

• Explain the differences between cash and profit
• Prepare a cash flow forecast
• Understand the concept and implications of liquidity
• Use ratio analysis to understand an organisation’s cash flow dynamics
• Understand the difference between budgets and forecasts
• Prepare break-even analyses for business plans
• Work confidently with colleagues in a financial environment.
• Introduction to Financial Reporting
• History and background
• Why is cash flow analysis important?
• Fundamental principles and concepts
• Key financial statements
• Accounting conventions
• The importance of liquidity
• Accounting conventions
• Difference between cash and profit
• Key Financial Statements
• The Income statement (Profit and Loss Account)
• Balance sheet
• Cash flow statement
• Working Capital Management and Liquidity
• What it is and why it is important?
• Key issues
• Distinction between profit and cash flow
• Operational and non-operational liquidity
• Cash flow forecasting
• Internal and external sources of finance
• Capital expenditure
• Break-Even Analysis
• Break-even analysis
• Gross margin and contribution analysis
• Break-even analysis and the margin of safety
• Budgeting and Forecasting
• The role of budgets and forecasts in planning and control
• Types of budgets
• Budget preparation
• Cash Flow Ratios
• The use and relevance of ratios
• Capital structure
• Ratio analysis