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The Essence of Corporate Cashflow Sustainability - 1 Day Workshop
Current accounting & finance practice focuses on cashflow projections, which are short-term in nature and by design. Cashflow Sustainability focuses on the future; the ability of the company to continue its corporate growth indefinitely. But this cannot happen overnight.
The company needs to develop, build, monitor and assess cashflow sustainability. To do so, management need to address the following:
a) Cashflow engines – Capital structure (Cashflow funding engine) and Sales (Cashflow generating engine)
b) Economic Resources Approach to Accounting (ERAA),
c) Lagging & leading indicators (typically, Financial Limits to Growth (FLTG) and 2-level Sales Analysis (TLSA)),
d) V.I.S.A. (Volatility of P&L Impairment of assets; Sustainability of operating cashflows; Adequacy of funding resources) Approach to Financial Management,
e) Cashflow return on working capital,
f) Period & Trend Cashflow Statement Analysis,
g) Trend P&L PAT and Trend Cash PAT feeding each other, and more.
An integration of these new and existing concepts and principles would enable cashflow sustainability to be better understood and managed, for the benefit of all stakeholders, especially the discerning shareholders.
This course clearly explains these new concepts and principles, which can be applied on the job immediately to ensure cashflow sustainability of your company.
Each participant shall receive a book "The Essence of Corporate Cashflow Sustainability" by Michael Lee
The company needs to develop, build, monitor and assess cashflow sustainability. To do so, management need to address the following:
a) Cashflow engines – Capital structure (Cashflow funding engine) and Sales (Cashflow generating engine)
b) Economic Resources Approach to Accounting (ERAA),
c) Lagging & leading indicators (typically, Financial Limits to Growth (FLTG) and 2-level Sales Analysis (TLSA)),
d) V.I.S.A. (Volatility of P&L Impairment of assets; Sustainability of operating cashflows; Adequacy of funding resources) Approach to Financial Management,
e) Cashflow return on working capital,
f) Period & Trend Cashflow Statement Analysis,
g) Trend P&L PAT and Trend Cash PAT feeding each other, and more.
An integration of these new and existing concepts and principles would enable cashflow sustainability to be better understood and managed, for the benefit of all stakeholders, especially the discerning shareholders.
This course clearly explains these new concepts and principles, which can be applied on the job immediately to ensure cashflow sustainability of your company.
Each participant shall receive a book "The Essence of Corporate Cashflow Sustainability" by Michael Lee
Objective
1. Learn what cashflow sustainability is about
2.Understand the flows and interrelationships among financial statements in respect of the 2 key cashflow engines.
3.Understand and apply the components of the Cashflow Sustainability Framework
4.Appreciate the importance of shareholder value and its drivers
5.Understand what drives cashflow sustainability for the going concern assumption to be upheld,
6. Apply a 7-step approach to period cashflow statement analysis
7. Apply a 5-step approach to trend cashflow statement analysis
8. Learn how to ensure that the company’s cashflow is visibly sustainable, where P&L PAT and Cash PAT feed each other.
2.Understand the flows and interrelationships among financial statements in respect of the 2 key cashflow engines.
3.Understand and apply the components of the Cashflow Sustainability Framework
4.Appreciate the importance of shareholder value and its drivers
5.Understand what drives cashflow sustainability for the going concern assumption to be upheld,
6. Apply a 7-step approach to period cashflow statement analysis
7. Apply a 5-step approach to trend cashflow statement analysis
8. Learn how to ensure that the company’s cashflow is visibly sustainable, where P&L PAT and Cash PAT feed each other.
Outline
The essence of corporate cashflow sustainability covers the following topics:
a) From Entity Concept to Cashflow Sustainability
How cashflow sustainability can help ensure that the entity journeys toward existence in perpetuity in furtherance of the entity and going concern concepts.
b) Shareholder value and V.I.S.A.
The elements of shareholder value and how each plays a significant role in enabling the company’s perpetual existence. And how V.I.S.A. establishes the general financial health of the company.
c) Strengthening the 2 key engines of cashflows – capital structure and sales.
d) The Economic Resources Approach to Accounting (ERAA)
Analysis of the ERAA Framework and how it helps build, monitor, and assess a company’s cashflow sustainability.
e) Capital structure, leverage, and risks
Relationship between capital structure, leverage and risks and their impact on and implications to financial planning, operational performance, and shareholder value
f) Leading & lagging indicators
i) using lagging indicators to uncover what have gone wrong
ii) applying leading indicators to forewarn what could go wrong, providing financial guard rails, and protect sales growth from being too aggressive, which could lead to financial disaster
g) Period cashflow statement analysis
Applying a 7-step approach to analyse the period cashflow statement, to unlock cashflows for corporate growth, and have a fuller appreciation of where cashflows are heading, and finally
h) Trend cashflow statement analysis
Applying a 5-step approach to analyse trend cashflow statements to assess the company’s cashflow sustainability, whereby P&L PAT and Cash PAT feed each other.
a) From Entity Concept to Cashflow Sustainability
How cashflow sustainability can help ensure that the entity journeys toward existence in perpetuity in furtherance of the entity and going concern concepts.
b) Shareholder value and V.I.S.A.
The elements of shareholder value and how each plays a significant role in enabling the company’s perpetual existence. And how V.I.S.A. establishes the general financial health of the company.
c) Strengthening the 2 key engines of cashflows – capital structure and sales.
d) The Economic Resources Approach to Accounting (ERAA)
Analysis of the ERAA Framework and how it helps build, monitor, and assess a company’s cashflow sustainability.
e) Capital structure, leverage, and risks
Relationship between capital structure, leverage and risks and their impact on and implications to financial planning, operational performance, and shareholder value
f) Leading & lagging indicators
i) using lagging indicators to uncover what have gone wrong
ii) applying leading indicators to forewarn what could go wrong, providing financial guard rails, and protect sales growth from being too aggressive, which could lead to financial disaster
g) Period cashflow statement analysis
Applying a 7-step approach to analyse the period cashflow statement, to unlock cashflows for corporate growth, and have a fuller appreciation of where cashflows are heading, and finally
h) Trend cashflow statement analysis
Applying a 5-step approach to analyse trend cashflow statements to assess the company’s cashflow sustainability, whereby P&L PAT and Cash PAT feed each other.
Who should attend
1) Newly appointed Finance Leaders/CFOs/CEOs
2) Finance Leaders who want to widen their scope of knowledge and skill sets
3) CFO/CEO-aspirants
4) Heads of Finance Department
5) Finance Managers
6) Finance Leaders who want to fill knowledge and skill gaps.
7) Relationship Managers (banks) who need to interface with CFO/CEOs
8) Financial consultants
2) Finance Leaders who want to widen their scope of knowledge and skill sets
3) CFO/CEO-aspirants
4) Heads of Finance Department
5) Finance Managers
6) Finance Leaders who want to fill knowledge and skill gaps.
7) Relationship Managers (banks) who need to interface with CFO/CEOs
8) Financial consultants
Methodology
This program will be conducted in an onsite environment conducive to learning. The trainer’s sharing of new finance knowledge and skillsets coupled with practical examples/illustrations will further enhance learning and practical application at work.
Profile of Michael Matthew Lee
Michael Matthew Lee is a trained teacher, lecturer, C-suite coach, and facilitator, and is himself a life-long learner. Being trained, he is skilful in explaining difficult concepts in a simple and understandable manner. With his more than 40 years of corporate working experience, which include serving as Group CFO of 3 large Main Board public-listed groups, and as CXO (MD/CEO/COO) of various companies across industries, he specialises in Finance and Strategic Marketing, and is exposed to senior executive management practices, issues, and challenges.
He authored the book “The Essence of Corporate Cashflow Sustainability” launched in June 2022 and has written 15 accounting & finance articles. His 2nd book “Corporate Growth & Cashflow Sustainability” was launched on 6th Jan 2024.
Michael Matthew Lee’s credentials are:
Chartered Accountant (ISCA)
Chartered Marketer (CIM(UK))
Associate CVA
MBA (Finance, NUS Business School)
MBA (Strategic Marketing, University of Hull)
BAcc (NUS); DipM (UK); PDipM (APAC); ACTA; PMC. CertEd
ASEAN CPA; FCA(Singapore); FCPA(Aust); FCCA(UK); FCIM(UK); MSID.
