Cash Flow Analysis and Forecasting The Definitive Guide to Understanding and Using Published Cash Flow Data

by Jury, Timothy

• ISBN13: 9781119962656
• ISBN10: 111996265X
• Edition: 1st
• Format: Hardcover
• Copyright: 2012-04-30
• Publisher: Wiley

Summary

This book is the definitive guide to cash flow statement analysis and forecasting. It takes the reader from an introduction about how cash flows move within a business, through to a detailed review of the contents of a cash flow statement. This is followed by detailed guidance on how to restate cash flows into a template format. The book shows how to use the template to analyse the data from start up, growth, mature and declining companies, and those using US GAAP and IAS reporting. The book includes real world examples from such companies as Black and Decker (US), Fiat (Italy) and Tesco (UK). A section on cash flow forecasting includes full coverage of spreadsheet risk and good practice. Complete with chapters of particular interest to those involved in credit markets as lenders or counter-parties, those running businesses and those in equity investing, this book is the definitive guide to understanding and interpreting cash flow data.

Author Biography

Timothy D.H. Jury (Lancashire, UK), is a financial training consultant and chartered accountant. With considerable experience of management in turnaround situations, Timothy also spent over two years developing and presenting corporate credit training for major banks, working for a consultancy specializing in training for financial services businesses. He is now a full time training and strategy consultant offering courses covering all aspects of corporate lending, financial analysis, especially cash flow analysis, accounting, valuation, corporate finance, M&A, strategy and management. In this role he has undertaken in house training initiatives for such clients as Ernst & Young, New York, Standard Chartered Bank, India, and Societe Generale, London. In addition, he has developed and delivered Euromoney public courses all over the world. He is co-author of Advanced Credit Analysis, published by Euromoney in 1997.

Table of Contents

Introduction	p. ix
Historic Cash Flow Analysis
Understanding How Cash Flows in a Business	p. 3
Understanding Cash Flows Properly	p. 21
Start-up, Growth, Mature, Decline	p. 47
Restating the Cash Flows of a Real Business	p. 59
Restating US GAAP Cash Flows	p. 83
Analysing the Cash Flows of Mature Businesses	p. 99
Analysing the Cash Flows of Growth Businesses	p. 135
Growth and Mature - Further Analysis Issues	p. 153
Analysing the Cash Flows of Start-up Businesses	p. 171
Analysing the Cash Flows of Decline Businesses	p. 179
What to do about Bad Cash Flows	p. 185
Cash Versus Profit as a Measure of Performance	p. 191
Cash Flow Analysis and Credit Risk	p. 201
Cash Flow Analysis and Performance Measurement	p. 215
Analysing Direct Cash Flow Statements	p. 223
Generating a Cash Flow Summary from Profit and Loss Account and Balance Sheet Data	p. 231
Summarising Historic Free Cash Flow	p. 247
Forecasting Cash Flows
Introduction	p. 255
Spreadsheet Risk	p. 263
Good Practice Spreadsheet Development	p. 275
The Use of Assumptions in Spreadsheet Models	p. 295
Index	p. 305
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