Workshop on Forecasting and Analysing Cash Flow

Module 1: Introduction to Cash Flow Management

Importance of cash flow in financial sustainability

Cash flow vs. profit: key differences

Types of cash flow (operating, investing, financing)

Practical Exercise: Identifying cash flow components from sample financial statements

Module 2: Building a Cash Flow Forecast

Methods of forecasting: direct vs. indirect approach

Data sources for reliable forecasts

Designing a cash flow template in Excel

Excel Tools/Functions: SUM, IF, VLOOKUP, Data Validation

Exercise: Creating a 12-month rolling forecast

Module 3: Analysing Cash Flow Patterns and Variances

Identifying inflow and outflow trends

Variance analysis techniques

Liquidity indicators and ratios (current ratio, quick ratio, operating cash flow ratio)

Excel Tools/Functions: AVERAGE, VAR, Conditional Formatting, PivotTables

Exercise: Variance analysis and ratio calculation from a case dataset

Module 4: Working Capital and Cash Optimization

Understanding working capital components (receivables, payables, inventory)

Techniques to optimize working capital cycles

Cash conversion cycle analysis

Excel Tools/Functions: DSUM, DAYS, NETWORKDAYS, PivotCharts

Exercise: Calculate and interpret a cash conversion cycle

Module 5: Scenario Planning and Sensitivity Analysis

What-if analysis in cash forecasting

Stress testing for liquidity risks

Scenario planning for best/worst/most-likely cases

Excel Tools/Functions: Scenario Manager, Goal Seek, OFFSET, INDEX-MATCH

Exercise: Building sensitivity analysis models in Excel

Module 6: Cash Flow Reporting and Communication

Structuring clear and decision-oriented cash flow reports

Dashboarding for management reporting

Presenting insights to senior leadership and stakeholders

Excel Tools/Functions: PivotTables, Charts, Slicers, Conditional Formatting

Exercise: Build a simple cash flow dashboard for reporting

Module 7: Case Studies and Practical Applications

Real-life case studies from businesses and projects

Group work: preparing a cash flow forecast and variance report

Best practices and lessons learned in managing liquidity