Liquidity Management & Forecasting

Poor cash management can kill businesses that might have otherwise survived. The financial health of an organization can be improved by using the key tools of good cash management and making better, more informed business decisions. 

This workshop will help participants apply latest practices covering cas h optimization techniques and draft a cas h flow forecast and establish cas h and loan forecasted balances at specific dates.

It will explore ways to improve a cas h budget and how to apply cas h-flow triage when needed hence reducing an organisation’s risk of a cas h-flow crisis. 

Key Benefits:

Participants will learn-

  • Accounting for cash and working capital
  • The drivers of cash flow, liquidity and solvency
  • Managing and improving operating cash flows
  • Techniques for optimising the components of working capital
  • Techniques for cash flow forecasting

Cas h and liquidity management

  • The optimum cash balance  
  • Managing and accelerating collections
  • Re-invoicing
  • Working capital ratio analysis for decision making
    • Days sales outstanding versus credit term
    • Days inventory on hand versus lead time
    • Days of payables
    • Cash conversion cycle
  • Treasury Key Performance Indicators

Improving Operating Cas h Flow 

  • The Cost – Volume – Profit Relationship
  • The Drivers of Profit and Shareholder Value
  • Measuring and Managing – Return on Investment

Optimising Working Capital 

  • Understanding the Working Capital Cycle
  • Practical Tools to Optimise Inventories
  • Practical Tools to Optimise Trade Receivables
  • Using Improvements to Financial Systems to Improve Cas h Flow

Managing Business Funding and Investment 

  • Sources of Business Funding
  • Measuring and Managing – Capital Structure and Risk
  • Calculating the Cost of Capital
  • Using Excel’s Discounted Cas h Flow Analysis Tools
  • A Cas h Flow Based Approach to Capital Investment Decision-making

Cas h Flow Planning and Forecasting 

  • Understand how to build a Cash-Flow Forecast
  • Explain cash-flow triage, including when and how to administer
  • Discuss ways to avoid unexpected cash-flow deficit
  • Cash Flow Forecasting Methods – purpose, horizon, frequency 
  • Forecasting methods
  • Building a Key Driver Cash Flow Forecast