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4 - AAU - Accounting and Financial Auditing

AAU 146 - Project Cash Flow Analysis and Break Even

Code Start Date Duration Venue
AAU 146 09 October 2023 5 Days Istanbul Registration Form Link
AAU 146 04 December 2023 5 Days Istanbul Registration Form Link
Please contact us for fees


Course Description

Financial information is the key to understanding the business's profitability, and knowing the numbers is essential for learning about your company and planning for the future.

The importance of strong cash flow is aptly stated in the common expression "cash is king." The premise of this is that having cash puts you in a more stable position with better buying power. While you can borrow money at times, cash affords you greater protection against loan defaults or foreclosures.Inherently, you need positive future cash flow to pay for your debt commitments. Companies commonly have long-term loans and short-term credit accounts with vendors.

Along with debt management, strong cash flow provides the comfort and capabilities a business needs to invest in growth. Building new locations, investing in research and development, renovating infrastructure, improving technology, providing more training and purchasing more assets and inventory are among the ways your business can grow and improve with strong positive cash flow.

Course Objectives

  • Determining the current and future financial position of the company
  • Determining the optimal output size that avoids the company's bad situation
  • Learning why cash flow is the key to business survival and growth
  • Getting practical tips to improve working capital management and profit
  • Identifying critical success factors for strong results

Who Should Attend?

  • Managers
  • Executives
  • Decision-makers 
  • Anyone planning to become more effective in finance, accounting and implementing projects.

Course Details/Schedule

Day 1

  • Definition of Cash Flow List
  • Importance and Adequacy of Cash Flow List
  • Prepare a cash flow statement
  • Components of cash flow statement

Day 2

  • Operating activities
  • Investment activities
  • Financing activities
  • Cash flow statement indicators
  • Liquidity index
  • Cash indicators
  • Operating size indicators

Day 3

  • Liquidity risk
  • Methods of predicting the future of the company through cash flow
  • Analysis of the status of the institution based on the cash flow statement
  • Exercises

Day 4

  • The fundamentals of calculating the Break Even
  • Fixed costs and variable costs
  • Financial leverage in companies
  • Operational leverage in companies
  • Sensitivity analysis
  • Stress tests for financial situation
  • Use Break Even analysis in administrative decisions
  • Break Even relationship with profit

Day 5

  • Assumptions of Break-Even Analysis
  • Methods to calculate Break-Even Point
  • Break Even Chart
  • Contribution and P/V Ratio
  • Margin of Safety
  • Exercises