Cash Flow and Projection _ Sensitivity Analysis Program

comprehensive training Cash Flow and Projection program is designed to equip participants with the essential knowledge and analytical skills needed to understand, construct, and interpret cash flow statements and financial projections. Through a practical, step-by-step approach, the program provides participants with the tools required to evaluate a company’s financial performance, estimate funding needs, and build forward-looking financial models supported by real case studies.

Objectives of the Cash Flow and Projection

The program aims to provide participants with the following:

• Understanding how to construct a cash flow statement using the 6-Blocks and 3-Blocks approaches and analyze its components.
• Learning techniques used to project a company’s financial performance, including forecasting sales, costs, and fixed asset expansions.
• Building a Loan Run-Off and repayment schedule.
• Calculating the company’s New Money Needs (NMN).
• Applying concepts through various case studies.

Target Audience

Employees working in finance companies and banks, specifically in the following departments:

• Operations
• Credit
• Risk

Cash flow agenda and forecasts

Day One – Cash Flow Mechanism & 6-Block Cash Flow Statement

• Introduction
• Importance of the cash flow statement
• Objectives and uses
• Conceptual framework for cash flow analysis
• Linking financial statements
• Key analytical focus points
• 6-Blocks cash flow statement format
• Case study

Day Two – Cash Flow Classifications (3-Blocks / Sources & Uses)

• Cash flow classifications
• Statement structure
• Transition from 6-Blocks to 3-Blocks
• Sources and uses of funds
• Case study

Cash Flow Analysis & Interpretation

• Cash flow analysis
• Understanding DSR and FCF equations
• FCF interpretation
• Summary
• Case study

Day Three – Projections & Sensitivity Analysis

• Introduction
• Cash Flow Projections and objective
• Constructing the projected financials
• LTD Runoff
• General steps when constructing the Projected Financials 
• Projecting Income statement Items 
• Projecting Balance sheet items
• Projecting other items
• Balancing the Balance sheet (NMN) 
• Sensitivity Analysis
• Case Study

Duration

3 training days