Cash flow analysis, financing and investment appraisal
Cash flow analysis shows where money comes from, where it goes and whether it is enough for your plans. Financing and investment calculations show whether an investment pays off and how best to fund it, with assumptions that stand up to the bank and the board.
Cash flow analysis
- Actual cash movements. Where cash is generated, where it is spent and how it behaves month by month.
- Working capital. How receivables, inventory and payables affect cash, and how to release it.
- Cash flow forecast. A weekly or monthly forecast that warns early when liquidity tightens.
Financing and investment calculations
- Investment returns. Payback period, net present value and internal rate of return.
- Financing options compared. Bank loans, leasing, public funding and equity side by side.
- Scenarios and sensitivity. What happens if sales, costs or interest rates change.
- Material for financiers. Calculations and reasoning in a form the bank understands.
Calculations are delivered as an Excel model with visible assumptions that you can update yourself.
Questions about the calculations
What is the difference between profit and cash flow?
Profit measures profitability according to the accounts; cash flow measures the actual movement of money. A profitable company can run into a cash crisis if money is tied up in receivables, inventory or investments.
What information do you need?
Typically financial statements, monthly accounts, receivables and payables, and details of planned investments and financing. In the initial review we agree what your situation requires.
Will the bank accept the calculation?
The calculations are built so that the assumptions and their reasoning are visible, which is exactly what a financier wants to see to support a credit decision.