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Liquidity & Cash Flow Forecasting

"Liquidity & Cash Flow Forecasting" Module is part of the "Certified Credit Risk Officer (C-CRRO)" and the "Certified Credit Risk Analyst (C-CRA)" training programs.

Description

The current global environment and the economic climate have given rise to the need for a constant increase in the need for experienced professionals in building forecasting models, since enterprises are required to predict different scenarios about the future in order to better adapt to an unstable and uncertain environment.
In this seminar, you will learn cash flow and working capital management to maximize the use of cash. You will also learn how to prepare cash flow statements under direct and indirect methods in addition to accurate cash flow forecasting and analysis techniques, appreciate the importance of cash flow generation, construct cash flow statements for forecasting purposes using the income statement and the balance sheet.
In addition, you will construct forecast cash flow models in excel and use sensitivity analysis to understand the potential impact of risk crystallization on the company’s ability to service its debts, understand why cash flow and the debt-service coverage ratio (DSCR) is the prime financial ratio in understanding a company’s ability to honour its debts, assess how company liquidity and cash flow generation and use cash flows to assess the impact of company strategy on the ability of the company to generate cash flows going forward.

Target Audience

  • Chief Financial Officers, Credit Rating Managers, Accountants, Financial advisors and Financial analysts
  • Entrepreneurs with moderate experience in the preparation of financial models, who wish to improve their skills in financial decision making.
  • Financial controllers, Working capital managers, treasury professionals
  • Business development managers

Subject Areas

Importance of cash flow
  • Accounting for cash, motives behind the Increasing regulatory emphasis on cash flow-based lending
  • Why cash flows matter to managers and to debt and equity providers
  • Why cash flow analysis reveals more than income statement and balance sheet analysis
  • The difference between cash flow and profit, identifying Non-cash items and timing differences
Cash flow statements
  • Constructing the cash flow statement 
  • Analyzing historic cash flow statements 
Cash flow ratios and management
  • Performing and interpreting cash flow ratios 
  • Understanding the priority of cash flows 
  • Identification and management of cash flow problems 
Cash budgeting
  • Explaining the impact of working capital on cash flow 
  • Preparing cash budgets 
Sensitivity analysis
  • Using sensitivity analysis of a project’s key sales and costs assumptions to assess the impact of risk events on the company’s ability to service debt
Financial Model
  • Preparing a financial model
  • Developing a financial model to forecast cash flows
Forecasting the key figures of the Profit and Loss Account and the Balance Sheet
  • Forecasting techniques (linear regression, non-linear methods).
  • Revenues, expenditure, investments, depreciation and amortization, borrowings.
  • Indirectly building the Cash Flow Statement
Case study
  • Practical application involving all subject areas via case studies

What you will learn

  • You will become familiar with building the three financial statements (Profit and Loss Account, Statement of Financial Position, and Cash Flow Statement) and interlinking them.
  • You will understand the evaluation method of companies and learn the relevant multipliers and (evaluation) models.
  • You will become familiar with uncertainty management methods by building various scenarios about the future.
  • You will learn how to evaluate the parameters that are more important for specific financial key performance indicators (KPIs) and make remedial decisions to improve them.
  • Recognize the importance and elements of an organization's cash flow and apply ratio analysis.
  • Describe the impact of working capital management on cash flow.
  • Analyze liquidity and the cash flow position of organizations including free cash flow. 
  • Review cash flow key presentation topics and apply cash flow forecasting techniques.
  • Understand the difference between the Indirect and Direct methods of cash flow statements.
  • Understand why EBITDA does not spell cash flow and distinguish cash flows from operations, investing and financing.
  • Use of the debt service coverage ratio as the principal credit risk ratio from forecast cash flow analysis.
  • Use proxy ratios (for DSCR) include debt to EBITDA and their limitations.

Seminar Timetable

Date
1st & 2nd Teaching Hour
Break
3rd & 4th Teaching Hour
29th of November
10.30 - 12.00
12:00 - 12:15
12:15 - 13:45
5th of December
18:30 - 20:00
20:00 - 20:15
20:15 - 21:45
7th of December
18.30 - 20.00
20:00 - 20:15
20.15 - 21.45
11th of December
18.30 - 20.00
20:00 - 20:15
20.15 - 21.45
13th of December
18.30 - 20.00
20:00 - 20:15
20.15 - 21.45
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Course Start Date
29 pf November 2023

Cost of Attendance

1.000 €
  • 20 Hours
  • Live or Online
  • Attendance Certificate
Application for Registration

Lecturer

Epameinondas <br/>Katsikas PhD, FHEA, CMBE
Epameinondas
Katsikas PhD, FHEA, CMBELecturer in Accounting at Kent Business School

Lecturer in Accounting at Kent Business School, University of Kent
Visiting professor at the University of Bologna, Italy and Kwansei Gakuin University, Japan


 Dr Epameinondas Katsikas is a Lecturer in Accounting at Kent Business School, University of Kent and a visiting professor at the University of Bologna, Italy and Kwansei Gakuin University, Japan. He holds a BSc degree in accounting from Strayer University, USA, an MBA degree from Leicester University, UK and PhD in Accounting from Durham University Business School, UK. Before starting his PhD, Epameinondas worked in the private and the public sector in business administration and the field of accounting. Has worked as an accountant in the private and public sector, finance officer in the finance department of a Greek university and owner of his own accounting practice. Epameinondas has taught previously at Durham University, Queen Mary University, Oxford Brookes University, University of Kent, Bologna University and Kwansei Gakuin University, Japan, at both undergraduate and postgraduate levels and also at the University of London, global MBA (online). Currently a research fellow at the Hellenic Observatory of Corporate Governance (hocg.eu). Has published his work in international peer-reviewed journals and presented parts of his work at leading international conferences. His teaching interests lay in the area of management accounting, financial accounting, performance measurement, change, benchmarking, financial statement analysis and management control systems, CSR and corporate governance. Has taught at Masters programmes in accounting and finance, MBA, and at both undergraduate and postgraduate levels.
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Chris <br/>Grose PhD
Chris
Grose PhDAssistant Professor in International Hellenic University

Professor of Finance in the University of London
Senior Research Fellow Hellenic Observatory of Corporate Governance

Chris Grose is an Assistant Professor at the International Hellenic University. He has a PhD in Finance from the University of Macedonia and an MSc in Money, Banking and Finance from the University of Birmingham. He has over 12 years of experience teaching subjects in Finance and Accounting mainly at a postgraduate level. He has extensive online teaching experience with various institutions. He teaches Finance in the Global MBA of the University of London and is a Senior Research Fellow at the Hellenic Observatory of Corporate Governance. Chris does consulting work for public organizations and private firms, while he has over 18 years of experience working for finance departments and consulting firms. His consultancy work focuses on both finance and corporate governance issues as well as in business process restructuring and business consultancy projects for public firms, organisations and SMEs. His broad research interests lie in the areas of corporate finance, institutional investing and corporate governance. His current research agenda focuses more specifically on corporate finance, investments, corporate restructurings and entrepreneurial finance. He has published in the Review of Quantitative Finance and Accounting, the Journal of International Financial Markets, Institutions and Money and the International Review of Financial Analysis amongst other journals.

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