The cash flow forecast file is available for download for channel members, I have posted the link on the Community tab for channel members to use. For information on the membership levels and benefits, check th-cam.com/channels/QQJnyU8fALcOqqpyyIN4sg.htmljoin
Man, I just loved it! I have been working in a treasury dept for 12 years and only now I'm studying it, I did a cash flow forecast for the month, but this one is great ^^ it uses DSO also, I loved!
That is wonderful to hear, Alexandre! Thank you very much for the kind words. I think my videos on working capital management as well as DSO might be helpful for you too, so you can understand some of the drivers: th-cam.com/video/c5iigcEppZw/w-d-xo.html
@@TheFinanceStoryteller great, I watched, I have a question, in my case, I have a big accounts payable, the employees part is less then 10% of total payables, so should I use the dpo like you used the dso? with it the the dio? then before sells, I can put the revenue in - x days, x=dio+dpo, the accounts payable should be x+dpo?
@@eroteam2 Hello Alexandre! The cash flow forecast file that I made uses the direct method of cash flow reporting in the CFOA section. You could also use the indirect method, which basically takes net income, adjusts for non-cash expenses like depreciation, and looks at the increases or decreases in the elements of working capital (receivables, inventory, payables): th-cam.com/video/Dy6iZeakLQ4/w-d-xo.html As you suggested, if accounts payable are sizeable, you can add a section to my direct method template to forecast the payments to suppliers using DPO (as "payments to suppliers" is a line item there). If you also want to incorporate movements in inventory levels, you will have to switch to a forecasting file using the indirect method. Hope that makes sense and helps!
Glad you think so! I find cash flow statements fascinating, here's the link to my playlist of examples and case studies: th-cam.com/video/mZBjsIYrLvM/w-d-xo.html
Thank you kindly! The cash flow statement is one of my favorite topics, see my cash flow statement playlist: th-cam.com/video/mZBjsIYrLvM/w-d-xo.html Hope you find some more videos there that are helpful for you!
Hi Alex! That depends on which method of cash flow reporting is used by the company. If the company uses the direct method, then cash paid to suppliers is a separate line item. If the company uses the indirect method, then sadly this is not separately identifiable. I have a video describing the difference between the direct and indirect method for you: th-cam.com/video/Dy6iZeakLQ4/w-d-xo.html as well as a video reviewing the direct method cash flow statement example of CVS Health: th-cam.com/video/l04UCTIBqgM/w-d-xo.html
Found your channel today and started watching some of your work. It's very good and the content of your videos has imense value! I would like to ask you for book recommendations, specifically for analysing financial statements if possible
Welcome aboard, Robim! I have been thinking about your question of book recommendations, but can't come up with anything right now. I learned a lot "in real life" when working at General Electric, and after that when delivering "finance for non-financial managers" programs for various companies. I have made a playlist of all the finance case study videos that I made over the past few years, that shows a lot of how I approach financial statement analysis: th-cam.com/video/PI9X5Ybek_E/w-d-xo.html Additionally, financial ratio analysis really helps to put things in perspective th-cam.com/video/MTq7HuvoGck/w-d-xo.html
Hello again Dmitry! The file is available for download for channel members, I have posted the link on the Community tab for channel members to use. For information on the membership levels and benefits, check th-cam.com/channels/QQJnyU8fALcOqqpyyIN4sg.htmljoin
@@TheFinanceStoryteller When I wanted to pay for Supporter membership I'm getting the following error: Uh oh, something went wrong You already have a PayPal account with the same name. Please reuse it or use a different payment method. [OR-CPRT-01]
Sounds like you are trying to add Paypal account information to your Google account, while the information is already set up. You should be able to see the Paypal information under the "Payment methods" tab, and be able to use it for transactions on the Google/TH-cam platform.
Thanks for the video..What about the divestments in the investment activities? If there was divestment investment activities, investment activities could have been positive. İnvestment activities is not necessarily negative.
Correct, that would be shown as a cash inflow from investing activities. Much rarer than CapEx spending or cash outflow from acquisitions, so to keep things simple I decided not to cover it here.
Hello David! In the current assets section: cash and cash equivalents. December ending balance equals January cash opening balance. Alternatively, if the balance sheet has not been put together yet, you can find the cash opening balance on the year-end bank statement.
No, none of those. If it is any help, I have specific videos on prepaid expenses th-cam.com/video/hUz39T8-V1I/w-d-xo.html and accounts receivable vs accounts payable th-cam.com/video/x_aUWbQa878/w-d-xo.html for you to watch.
Thank you for the suggestion! The file is available for download for channel members, I have posted the link on the Community tab for channel members to use. For information on the membership levels and benefits, check th-cam.com/channels/QQJnyU8fALcOqqpyyIN4sg.htmljoin
You will be randomly allocated a company listed on the ASX by the facilitator You will then collect the yearly net operating cash flows of the company over the past 5 years. Calculate an arithmetic average growth rate using the 5 years of cash flows and use this average growth rate to forecast the next 5 years of cash flows based on the latest net operating cash flow figure. Treat the forecast cash flows as incremental cash flows generated by a project. Assume an initial outlay equal to 55% of the sum of all forecast cash flows and a required rate of return of 12% p.a. compounded annually. (a) Clearly show how you have derived the average growth rate, the forecast cash flows, and the initial outlay (b) Calculate the Net Present Value (NPV) (c) Calculate the Internal Rate of Return (d) Based on (b) and (c) above, should this project be accepted? Why? sir can you help me to solve this particular problem.
I suggest you view my videos on NPV and IRR th-cam.com/video/N-lN5xORIwc/w-d-xo.html as well as the one on the cash flow statement th-cam.com/video/mZBjsIYrLvM/w-d-xo.html
The cash flow forecast file is available for download for channel members, I have posted the link on the Community tab for channel members to use. For information on the membership levels and benefits, check th-cam.com/channels/QQJnyU8fALcOqqpyyIN4sg.htmljoin
Thank you so much for valuable learning video about forecast cashflow. It really helps me now👍 thank you so much
Happy to hear that! More videos on cash flow in this playlist: th-cam.com/video/mZBjsIYrLvM/w-d-xo.html&pp=gAQB
Love your videos. Vert insightful from a business perspective.
Happy to hear that. :-) Thank you for watching and commenting.
Man, I just loved it! I have been working in a treasury dept for 12 years and only now I'm studying it, I did a cash flow forecast for the month, but this one is great ^^ it uses DSO also, I loved!
That is wonderful to hear, Alexandre! Thank you very much for the kind words. I think my videos on working capital management as well as DSO might be helpful for you too, so you can understand some of the drivers: th-cam.com/video/c5iigcEppZw/w-d-xo.html
@@TheFinanceStoryteller great, I watched, I have a question, in my case, I have a big accounts payable, the employees part is less then 10% of total payables, so should I use the dpo like you used the dso? with it the the dio? then before sells, I can put the revenue in - x days, x=dio+dpo, the accounts payable should be x+dpo?
@@eroteam2 Hello Alexandre! The cash flow forecast file that I made uses the direct method of cash flow reporting in the CFOA section. You could also use the indirect method, which basically takes net income, adjusts for non-cash expenses like depreciation, and looks at the increases or decreases in the elements of working capital (receivables, inventory, payables): th-cam.com/video/Dy6iZeakLQ4/w-d-xo.html
As you suggested, if accounts payable are sizeable, you can add a section to my direct method template to forecast the payments to suppliers using DPO (as "payments to suppliers" is a line item there). If you also want to incorporate movements in inventory levels, you will have to switch to a forecasting file using the indirect method.
Hope that makes sense and helps!
again, my big thanks! You helped me a lot! great video and a great example!
Thank you for your great work. Your channel deserves much higher places.
You're welcome! Thank you for the kind words. I am growing the channel as fast as I can. Please spread the word to friends and colleagues.
simply the best cashflow tutorial out there ! thank you
Glad you think so! I find cash flow statements fascinating, here's the link to my playlist of examples and case studies: th-cam.com/video/mZBjsIYrLvM/w-d-xo.html
@@TheFinanceStoryteller perfect thanks!
Very useful explanation! With a bit of networking, even the fresh graduate would be able to build such a model. Thank you, great as usual!
Thank you! Good to hear you enjoyed it. :-)
Very clear presentation. Thank you
You are welcome, Mohammed!
Thanks for making the finance and accounting in a simple way of story.I would toknow more stories on financial modeling from you.. thanks
You're welcome!!! More videos coming.
very well explained:) Thankyou
You're welcome 😊 This was fun to put together! Here is the playlist with more cash flow related videos: th-cam.com/video/mZBjsIYrLvM/w-d-xo.html
Thanks for this video.
You're welcome! :-)
Amazing stuff excellent
Thank you kindly! The cash flow statement is one of my favorite topics, see my cash flow statement playlist: th-cam.com/video/mZBjsIYrLvM/w-d-xo.html Hope you find some more videos there that are helpful for you!
Very well explained video, what is your thoughts on using this to value a company. or the usage of a DCF?
Hi Dolev! I have summarized my thoughts in my video on WACC: th-cam.com/video/1O-DbtVueMw/w-d-xo.html
Could you please make a video regarding how to do discounted cash flow analysis and cash flow projections annually.
Thanks for the suggestion, I covered part of that in my video on WACC: th-cam.com/video/1O-DbtVueMw/w-d-xo.html
Cash flow to wealth
Can you make a discounted free cash flow valuation of a company's stock? It will be much appreciated. Thanks for sharing all this knowledge
Hello! I cover some of that in my video on WACC: th-cam.com/video/1O-DbtVueMw/w-d-xo.html
Great video, thanks... How do you know what the cash paid to suppliers is using the historical financial statements?
Hi Alex! That depends on which method of cash flow reporting is used by the company. If the company uses the direct method, then cash paid to suppliers is a separate line item. If the company uses the indirect method, then sadly this is not separately identifiable. I have a video describing the difference between the direct and indirect method for you: th-cam.com/video/Dy6iZeakLQ4/w-d-xo.html as well as a video reviewing the direct method cash flow statement example of CVS Health: th-cam.com/video/l04UCTIBqgM/w-d-xo.html
Found your channel today and started watching some of your work. It's very good and the content of your videos has imense value! I would like to ask you for book recommendations, specifically for analysing financial statements if possible
Welcome aboard, Robim! I have been thinking about your question of book recommendations, but can't come up with anything right now. I learned a lot "in real life" when working at General Electric, and after that when delivering "finance for non-financial managers" programs for various companies. I have made a playlist of all the finance case study videos that I made over the past few years, that shows a lot of how I approach financial statement analysis: th-cam.com/video/PI9X5Ybek_E/w-d-xo.html Additionally, financial ratio analysis really helps to put things in perspective th-cam.com/video/MTq7HuvoGck/w-d-xo.html
@@TheFinanceStoryteller apreciate that, thank you!
💖💖💖
Glad you like it!
Philip, can you please share with us your Excel spreadsheet that you use in the video?
Hello again Dmitry! The file is available for download for channel members, I have posted the link on the Community tab for channel members to use. For information on the membership levels and benefits, check th-cam.com/channels/QQJnyU8fALcOqqpyyIN4sg.htmljoin
@@TheFinanceStoryteller When I wanted to pay for Supporter membership I'm getting the following error:
Uh oh, something went wrong
You already have a PayPal account with the same name. Please reuse it or use a different payment method. [OR-CPRT-01]
Sounds like you are trying to add Paypal account information to your Google account, while the information is already set up. You should be able to see the Paypal information under the "Payment methods" tab, and be able to use it for transactions on the Google/TH-cam platform.
Thanks for the video..What about the divestments in the investment activities? If there was divestment investment activities, investment activities could have been positive. İnvestment activities is not necessarily negative.
Correct, that would be shown as a cash inflow from investing activities. Much rarer than CapEx spending or cash outflow from acquisitions, so to keep things simple I decided not to cover it here.
The Finance Storyteller thanks for the clarification
Here's the link to a playlist of cash flow statement analysis case studies: th-cam.com/video/mZBjsIYrLvM/w-d-xo.html Hope these are helpful to you!
The Finance Storyteller it helps thanks a lot
Under which section of the balance sheet would you find the opening balance for Jan
Hello David! In the current assets section: cash and cash equivalents. December ending balance equals January cash opening balance. Alternatively, if the balance sheet has not been put together yet, you can find the cash opening balance on the year-end bank statement.
@@TheFinanceStoryteller Hi, would prepayments, trade receivables and bank loan be considered as a cash or cash equivalent.
No, none of those. If it is any help, I have specific videos on prepaid expenses th-cam.com/video/hUz39T8-V1I/w-d-xo.html and accounts receivable vs accounts payable th-cam.com/video/x_aUWbQa878/w-d-xo.html for you to watch.
@@TheFinanceStoryteller Great thanks appreciate the help
Can you share the excel file? Thanks!
Yes, that would be awesome!
Thank you for the suggestion! The file is available for download for channel members, I have posted the link on the Community tab for channel members to use. For information on the membership levels and benefits, check th-cam.com/channels/QQJnyU8fALcOqqpyyIN4sg.htmljoin
Why do we need to revisit the cash forecast model?
Cash is like oxygen for a company. If it's not there, everything stops....
As a university intellectual, I would like to expand this request could this be possible to send me relevant viedos regarding this topic.Thank you
Here's the link to my playlist on the cash flow statement: th-cam.com/video/mZBjsIYrLvM/w-d-xo.html
You will be randomly allocated a company listed on the ASX by the facilitator You will then collect the yearly net operating cash flows of the
company over the past 5 years. Calculate an arithmetic average growth rate using the 5
years of cash flows and use this average growth rate to forecast the next 5 years of cash
flows based on the latest net operating cash flow figure. Treat the forecast cash flows as
incremental cash flows generated by a project. Assume an initial outlay equal to 55% of the
sum of all forecast cash flows and a required rate of return of 12% p.a. compounded
annually.
(a) Clearly show how you have derived the average growth rate, the forecast cash flows,
and the initial outlay
(b) Calculate the Net Present Value (NPV)
(c) Calculate the Internal Rate of Return
(d) Based on (b) and (c) above, should this project be accepted? Why?
sir
can you help me to solve this particular problem.
I suggest you view my videos on NPV and IRR th-cam.com/video/N-lN5xORIwc/w-d-xo.html as well as the one on the cash flow statement th-cam.com/video/mZBjsIYrLvM/w-d-xo.html