+966 01 3 8493435
+966 01 3 8493402
+966 01 3 8493398

Management Course

Cash Flow Analysis

  • The analysis roadmap
  • The future versus the past
  • The cash flow versus earnings
  • The importance of liquidity
  • The dangers of extrapolation
  • The lending rationales
  • Self-liquidating loans
  • Asset protection lending
  • Cash flow lending
  • Other rationales
  • The concept of risk
  • Solvency risk
  • Volatility risk
  • Risk – identification, quantification, and structuring
  • Company dynamics
  • Market volatility
  • Revenue volatility
  • The different types of operating costs structures
  • Operating leverage
  • The corporate growth strategy and funding implications
  • Strategic capital management
  • The role of liquidity
  • Crisis management of liquidity
  • Role-play of managing a company in financial difficulties
  • A more rational approach to capital structuring
  • Common errors in an analysing liquidity
  • How liquidity should be assessed
  • Illiquidity versus insolvency
  • The cash cycle
  • The cash effect of the production cycle
  • The earnings effect of the cycle
  • The cause of overtrading
  • The importance of working investment
  • Measurement of working investment
  • Ratio analysis
  • The statement logic equation – key performance indicators
  • Implementation of the calculations – practical exercise
  • Analysis of profitability
  • Analysis of efficiency
  • Analysis of financing structure
  • Analysis of cash flow coverages
  • Comparative analysis discredited
  • Cash flow analysis
  • Deriving a cash flow from financial statements – practical exercise
  • The importance of cash flow analysis
  • When is the cash coverage adequate?
  • Calculation of debt servicing capacity
  • The impact of potential volatility
  • Free Cash Flow – how derived and why important
  • Structures to mitigate cash flow volatility
  • Guidance to covenant setting
  • Case study
  • The rise and fall of a company through financial mismanagement
  • Development and analysis of projection models
  • Predictive models discredited
  • Historical extrapolation discredited
  • The approach required for ‘normal’ corporate credits
  • The different approach required for highly-stressed financings
  • The importance of the analysis worksheet
  • The analytical methodologies – sensitivity, scenarios, break-even
  • Problem loans
  • The company’s typical behaviour with the onset of liquidity difficulties
  • Detecting signs of financial stress
  • Compositions of creditors
  • Transactions that can be avoided

Back to Top