Ian McIsaac

Financial Training and Consultancy

























Cashflow Analysis

For a detailed analysis of Cashflow visit the LEARNING CENTRE. The course outline is set out below.


A one-day course for relationship managers and analysts providing in-depth coverage of corporate cash flows. Participants will develop the skills and techniques to construct and interpret cash flows with a view to assessing the ability of companies to repay debt.

Course Dates

Course Programme:

Basic Principles
  • Types of cash flow
  • The differences between cash and profit
  • Working capital
  • Cash conversion cycle

    Case exercise: Comparing working capital cycles
Cash flow presentation
  • Significance of FRS 1
  • Cash flow formats and reconciliation to operating profit
  • The cashflow cascade
  • Free cash flow, operating cash flow and EBITDA

    Case exercise: Analysis of cash flow of UK corporate
Constructing cash flows
  • General principles of deriving cash flows from the balance sheet and P&L
  • Manual grid method
  • Computer generated models
  • Tricky areas: non-cash items, asset disposals, leasing.

    Case exercise: Northside plc
Interpretation of cash flow statements
  • Corporate comparisons
  • Net working assets
  • Ratio analysis and debt capacity
  • Trend analysis

    Case exercise: Analysis of UK corporate
  • Business risk and the robustness of cash flows
  • Forecasting misjudgements
  • Cash drivers
  • Sensitivity analysis
  • Sustainable growth

    Case study: Analysis of cash flow projections