Cash Flow Forecasting

By

  • Andrew Fight, International banking and training consultant

Budgets are like road maps -- they provide a direction for a corporates financial management. Balance sheets and statements of revenues also provide insights into how well a company is following that direction. But cash flow and cash flow forecasts are what guide the day-to-day itinerary for an organization. Budgets and cash flow are dynamic -- adjustments and changes can and should occur. If you understand what you are looking at, you can use cash flow to create better budgets and thus more accurate cash flow forecasting.Cash Flow Forecasting outlines the techniques required to undertake a detailed analysis of the cash flow dynamics of the business from both a historical and forward looking perspective. Cash Flow Forecasting explains how to: * Determine appropriate cash flow figures from pro forma financial statements * Interpret detailed cash flow forecasts and understand the difference between profit and cash flow * Conserve or generate cash in the short term * Evaluate different methods of project evaluation * Recognize the limitations of accounting information in valuing companies
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Audience

For those who work in Corporate Finance who are on the early career ladders of Equity Analysts, Private Equity Credit Analysts, Portfolio Managers, Corporate Finance Staff, Consultants, Treasury Staff.

 

Book information

  • Published: October 2005
  • Imprint: BUTTERWORTH HEINEMANN
  • ISBN: 978-0-7506-6136-2


Table of Contents

Introduction: Term Lending; Balance Sheet Analysis; Bankruptcy; Purpose Of Projections;Setting The Foundation: Information Sources;Projection Methodology: Profit And Loss Statement Projections; Balance Sheet Projections; Assets; Liabilities; New Money Need / Net Worth; Cash Flow Projections (Sources & Uses); Cash Flow Ratio Analysis; Sensitivity Analysis; Protection And Control In Term Lending: Covenants And Events Of Default; Conclusion; Glossary.