Financial Modelling and Cash Flow Forecasting Training Course

Participants can convert historical financial data into credible forecast assumptions and drivers.

• Historical financial statements normalised to establish a reliable forecast base
• Income statement drivers linked to volume, price and cost assumptions
• Balance sheet accounts mapped to operating, financing and noncash categories
• Accounting policies assessed for forecast implications under applicable reporting standards
• Non-recurring items isolated before projecting sustainable earnings and cash generation
• Trend, common-size and ratio analysis used to challenge historical performance
• Source-data reconciliation between management accounts, statutory accounts and planning data

Participants can forecast core operational drivers and translate them into working capital and tax movements.

• Revenue forecasts built from volume, price, mix and contract assumptions
• Cost of sales modelled through unit costs, capacity and inflation drivers
• Operating expense forecasts separated into fixed, variable and discretionary spending
• Working capital schedules built for receivables, inventory, payables and accruals
• Days sales outstanding, inventory days and payable days converted into cash effects
• Capital expenditure schedules linked to depreciation, disposals and asset additions
• Tax forecasts derived from taxable profit, losses and payment timing

Participants can link forecast statements into a balanced and internally consistent financial model.

• Integrated three-statement model linking income statement, balance sheet and cash flow
• Retained earnings, reserves and dividends rolled forward through equity schedules
• Depreciation, amortisation and impairment reconciled between profit and asset balances
• Debt balances, interest expense and principal repayments connected consistently
• Balance sheet balancing checks identify broken links and omitted movements
• Cash flow statement prepared using indirect method reconciliation from profit
• Monthly-to-annual aggregation tested without double counting or timing distortions

Participants can prepare rolling cash forecasts that show payment timing and near-term liquidity requirements.

• IAS 7 classifications applied to operating, investing and financing cash flows
• Direct-method cash forecasts built from customer receipts and supplier payments
• 13-week rolling cash forecast structured around weekly opening and closing liquidity
• Receipts timing modelled using invoice dates, collection curves and credit terms
• Payroll, tax, rent and debt service scheduled to actual payment dates
• Minimum cash thresholds and restricted cash identified for treasury decisions
• Forecast-to-actual variance analysis separates timing differences from underlying performance

Participants can model financing arrangements and assess forecast liquidity headroom under different funding conditions.

• Liquidity headroom measured against facilities, covenants and minimum cash requirements
• Revolving credit facilities, term loans and overdrafts modelled with drawdowns
• Interest calculations incorporate rates, margins, fees, amortisation and payment dates
• Debt covenant ratios calculated from forecast EBITDA, net debt and cash flow
• Dividend policies assessed against liquidity, distributable reserves and financing constraints
• Foreign exchange exposures translated using stated rates and settlement assumptions
• Funding shortfalls identified early through cash bridge and maturity analysis

Participants can test uncertainty and identify management actions required under alternative forecast conditions.

• Base-case assumptions documented with sources, owners and approval status
• Scenario analysis compares management, downside and recovery operating cases
• One-way and two-way data tables test critical forecast drivers
• Break-even analysis identifies sales volume required to protect liquidity
• Cash conversion cycle sensitivities quantify effects of working capital actions
• Monte Carlo simulation concepts distinguished from deterministic scenario modelling
• Management actions linked to trigger points, owners and decision deadlines

Participants can use forecast cash flows to assess value and support investment or financing decisions.

• Free cash flow calculated from operating profit, tax, capital expenditure and working capital
• Unlevered and levered cash flows distinguished for valuation and financing analysis
• Discounted cash flow valuation built using forecast periods and terminal value
• Weighted average cost of capital components examined for valuation assumptions
• Terminal value tested using perpetuity growth and exit multiple methods
• Enterprise value reconciled to equity value through net debt adjustments
• Valuation sensitivities displayed for discount rates, growth and operating performance

Participants can review model integrity, identify errors and document controls for reliable use.

• Model review checklist covers logic, formulas, inputs, outputs and presentation
• Excel error checks detect circular references, hardcodes and inconsistent formulas
• Reasonableness tests compare margins, ratios and cash movements over time
• Audit trails document assumption sources, changes, reviewers and approvals
• Peer review protocols separate preparer, reviewer and final model owner roles
• Model outputs reconciled to budgets, board packs and treasury reporting
• Data validation rules prevent invalid dates, rates and operating assumptions

Participants can present forecast findings clearly and plan controlled implementation within their finance function.

• Executive cash dashboards present liquidity, headroom, drivers and risk indicators
• Waterfall charts explain forecast movements between opening and closing cash
• Management narratives distinguish forecast facts, assumptions, risks and recommended actions
• Board papers connect scenario results to funding and operating decisions
• Forecast update calendar assigns data deadlines, review gates and sign-offs
• Personal application plan selects priority models, stakeholders and implementation milestones
• Model handover pack specifies documentation, access controls and maintenance routines