My cash flow handbook is live! What I missed? | Bojan Radojicic posted on the topic | LinkedIn (2024)

Why inventory planning at each level is important:𝗥𝗮𝘄 𝗠𝗮𝘁𝗲𝗿𝗶𝗮𝗹𝘀• Prevents production delays• Avoids overstocking.• Helps keep the right amount on hand.𝗪𝗼𝗿𝗸-𝗜𝗻-𝗣𝗿𝗼𝗴𝗿𝗲𝘀𝘀 (𝗪𝗜𝗣)• Identifies bottlenecks.• Helps to streamline the production process and reduce waste.𝗙𝗶𝗻𝗶𝘀𝗵𝗲𝗱 𝗚𝗼𝗼𝗱𝘀• Meets customer demand.• Prevents stockouts.𝗧𝗵𝗶𝘀 𝗶𝘀 𝘀𝘁𝗲𝗽 𝗯𝘆 𝘀𝘁𝗲𝗽 𝗴𝘂𝗶𝗱𝗲:→ Split inventories to 3 levels: Raw materials, WIP and Finished Goods→ Cost of material is associated with Raw material planning, COGS is associated with WIP and FG planning→ Input historical figures of cost of material and COGS and inventories→ Calculate days on hand for each type of inventories→ Input forecast of cost for material and COGS→ Make best estimate for each type of DOHs for next period→ Calculate inventories level based on formulas~~~~~~~~As part of working capital inventory planning is only one of the topics in my 𝗖𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗲 𝗙𝗶𝗻𝗮𝗻𝗰𝗲 𝗠𝗼𝗱𝗲𝗹𝗶𝗻𝗴 𝗣𝗮𝗰𝗸𝗮𝗴𝗲.𝗟𝗲𝗮𝗿𝗻 𝗺𝗼𝗿𝗲 𝗮𝗻𝗱 𝗰𝗵𝗲𝗰𝗸 𝘁𝗵𝗲 𝗼𝘁𝗵𝗲𝗿 𝗹𝗲𝘀𝘀𝗼𝗻𝘀.👉 https://lnkd.in/eN3Y_bzUUse Women's Day Special Offer -60% OFF to my Masterclass! The offer ends at Sunday EOD

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Want more cash flow?This is a pre-lesson and good foundation for the magical formula of cash flow increase.Let's forecast NWC~~~~~~~𝗜𝗻𝗽𝘂𝘁𝘀 𝗮𝗻𝗱 𝗮𝘀𝘀𝗲𝘀𝘀𝗺𝗲𝗻𝘁:Sales - historical dataSales - forecastCogs (or inventory turnover) - historical dataCogs - forecastDays sales outstanding - historical dataDays sales outstanding- forecastDays inventory outstanding - historical dataDays inventory outstanding- forecastDays payable outstanding - historical dataDays payable outstanding- forecast~~~~~~𝗙𝗼𝗿𝗲𝗰𝗮𝘀𝘁:Apply a formula for calculation of:Account receivables (AR)Inventory (I)Account payables (AP)~~~~~~𝗜𝗺𝗽𝗮𝗰𝘁 𝗼𝗳 𝗳𝘂𝘁𝘂𝗿𝗲 𝗰𝗮𝘀𝗵 𝗳𝗹𝗼𝘄AR increase = CF negative impact (decrease)I Increase = CF negative impact (decrease)AP increase = CF positive impact (increase)~~~~~~📌 Use my 𝗖𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗲 𝗙𝗶𝗻𝗮𝗻𝗰𝗲 𝗠𝗼𝗱𝗲𝗹𝗶𝗻𝗴 𝗣𝗮𝗰𝗸𝗮𝗴𝗲 and start improving your cash flows and financial health today 👉https://lnkd.in/dtcNgp47

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Top excel functions for financial modelers.But, remember!!𝗘𝘅𝗰𝗲𝗹 𝗜𝗦 𝗡𝗢𝗧 𝗳𝗶𝗻𝗮𝗻𝗰𝗲 𝗺𝗼𝗱𝗲𝗹𝗶𝗻𝗴. That is just a tool that can help us transfer our strategic thoughts into sheets. And sometimes it can help a lot. When it come to the excel functions, this is my choice:IF FV PV IRR NPVPMTSUMRATE XNPVSUMIF STDEV MATCH VLOOKUPCOUNTIF IFERRORAVERAGECUMIPMT EOMONTH CUMPRINC INDEX & MATCH~~~~~~~ 📌 If you are readyto transform your career with finance modeling skills start with these 35 lessons and 50+ modeling spreadsheets: 𝗪𝗵𝗮𝘁 𝗶𝘀 𝗶𝗻?💠 35 Lessons 💠 6 Hours of video course 💠 10+ Languages subtitle💠 50+ Editable Excel modeling sheets💠 330 pages of PDF finance modeling instructions 💠 30+ Pieces of actionable visuals and handbookshttps://lnkd.in/daWyvX6r𝗣𝗿𝗶𝗰𝗲? Likebusiness lunch for three.

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Building a three-statement model that just won't reconcile? You're not alone. But the solution might be closer than you think. 𝗨𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱𝗶𝗻𝗴 𝗮𝗰𝗰𝗼𝘂𝗻𝘁𝗶𝗻𝗴 𝗽𝗿𝗶𝗻𝗰𝗶𝗽𝗹𝗲𝘀 𝗶𝘀 𝘁𝗵𝗲 𝗺𝗶𝘀𝘀𝗶𝗻𝗴 𝗽𝗶𝗲𝗰𝗲 𝘁𝗼 𝘂𝗻𝗹𝗼𝗰𝗸𝗶𝗻𝗴 𝗿𝗼𝗯𝘂𝘀𝘁 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗺𝗼𝗱𝗲𝗹𝘀!Financial statements aren't isolated entities. They work together like a well-oiled machine. Achange in revenue (income statement) impacts your cash flow (cash flow statement) and asset levels (balance sheet). Accounting knowledge equips you to build these crucial connections within your model, ensuring it reflects the true financial picture.➡️ 𝗛𝗲𝗿𝗲'𝘀 𝗵𝗼𝘄 𝗮𝗰𝗰𝗼𝘂𝗻𝘁𝗶𝗻𝗴 𝗸𝗻𝗼𝘄𝗹𝗲𝗱𝗴𝗲 𝗲𝗺𝗽𝗼𝘄𝗲𝗿𝘀 𝘆𝗼𝘂𝗿 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗺𝗼𝗱𝗲𝗹𝗶𝗻𝗴:𝗖𝗼𝗻𝗻𝗲𝗰𝘁𝘀 𝘁𝗵𝗲 𝗗𝗼𝘁𝘀: You'll understand how seemingly separate transactions ripple through all three statements. For example, increased sales lead to higher accounts receivable and ultimately impact your cash flow.𝗠𝗮𝗶𝗻𝘁𝗮𝗶𝗻𝘀 𝗔𝗰𝗰𝘂𝗿𝗮𝗰𝘆: Accounting principles guide you in setting up formulas and relationships, preventing nonsensical outputs and ensuring a model that makes sense.~~~~~~~~~~~📌Ready to take your financial modeling skills to the next level? Start here: 👉 https://lnkd.in/dGZmHGfxP.S.What's your biggest challenge when building financial models? Share your thoughts in the comments!

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Don't miss these very essential calculations and concepts. This Cheat Sheet show the impactful financial model and how to learn essentials of corporate finance. Learn crucial finance principles given through real example and calculations. 🚀 𝗛𝗲𝗹𝗽 𝗺𝗲 𝘀𝗵𝗮𝗿𝗲 𝘁𝗵𝗶𝘀 𝗰𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗲 𝗳𝗶𝗻𝗮𝗻𝗰𝗲 𝗶𝗻𝘀𝗶𝗴𝗵𝘁𝘀 𝘄𝗶𝘁𝗵 𝘁𝗵𝗶𝘀 𝗙𝗥𝗘𝗘 𝗖𝗵𝗲𝗮𝘁 𝗦𝗵𝗲𝗲𝘁.👍 👍 👍 𝗟𝗶𝗸𝗲, 𝗦𝗵𝗮𝗿𝗲 𝗮𝗻𝗱 𝗖𝗼𝗺𝗺𝗲𝗻𝘁 𝘀𝗼 𝘁𝗵𝗶𝘀 𝗽𝗼𝘀𝘁 𝗰𝗮𝗻 𝗿𝗲𝗮𝗰𝗵 𝗽𝗿𝗼𝗳𝗲𝘀𝘀𝗶𝗼𝗻𝗮𝗹𝘀 𝘄𝗵𝗼 𝘄𝗮𝗻𝘁 𝘁𝗼 𝗹𝗲𝗮𝗿𝗻 𝗺𝗼𝗿𝗲 𝗮𝗯𝗼𝘂𝘁 𝗰𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗲 𝗳𝗶𝗻𝗮𝗻𝗰𝗲, 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝘀𝘁𝗮𝘁𝗲𝗺𝗲𝗻𝘁𝘀, 𝗮𝗻𝗮𝗹𝘆𝘀𝗶𝘀 𝗮𝗻𝗱 𝗿𝗲𝗽𝗼𝗿𝘁𝗶𝗻𝗴.𝗗𝗼 𝘆𝗼𝘂 𝗹𝗶𝗸𝗲 𝘁𝗵𝗲 𝗱𝗼𝘄𝗻𝗹𝗼𝗮𝗱𝗮𝗯𝗹𝗲 𝗣𝗗𝗙 𝘃𝗲𝗿𝘀𝗶𝗼𝗻?👉 𝗖𝗼𝗺𝗺𝗲𝗻𝘁 𝘁𝗵𝗶𝘀 𝗽𝗼𝘀𝘁 𝗼𝗿 𝗗𝗠 𝗺𝗲𝗜 𝘄𝗶𝗹𝗹 𝘀𝗵𝗮𝗿𝗲 𝗱𝗼𝘄𝗻𝗹𝗼𝗮𝗱 𝗹𝗶𝗻𝗸.🧿 𝗪𝗵𝗮𝘁 𝗶𝘀 𝗶𝗻𝗹𝗰𝘂𝗱𝗲𝗱▶️ Get started withFinancial statement presentation• Balance sheet• Profit and loss account• Cash flow statement (indirect method)▶️ Historical ratio analysis• Liquidity ratios• Profitability ratios• Activity / efficiency ratios• Ratios of financial structure▶️ Revenue forecast▶️ COGS forecast▶️ Fixed and variable overhead cost forecast▶️ Net working capital forecast• DSO calculation• DPO calculation• DIO calculation• Account receivable forecast• Account payable forecast• Inventories forecast▶️ CAPEX forecast• Forecast of tangible and intangible assets• Forecast of depreciation and amortization▶️ Financial liabilities forecast▶️ Balance sheet forecast▶️ P&L forecast▶️ Cash flow statement forecast▶️ Breakeven forecast▶️ Vertical P&L analysis▶️ Horizontal P&L analysis▶️ Weighted average cost of capital (WACC) forecast▶️ Valuation based on discounted cash flowsI missed something? Let me what to add and I will approach this in new version.--------------------------📌 Life in finance is busy. Deadlines, tons of spreadsheets, management pressure lead to chronic stress. I specialize in helping finance pros avoid chaos and focus on what matters. Start with building sustainable financial model:👉https://lnkd.in/dkA2qcKN

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A dollar today is worth more than a dollar tomorrow. This concept, known as the time value of money (TVM), is crucial for making informed financial decisions.Why is TVM important?➡️𝘌𝘢𝘳𝘯𝘪𝘯𝘨 𝘗𝘰𝘵𝘦𝘯𝘵𝘪𝘢𝘭Money can grow through investments, generating interest or returns over time. A dollar invested today can be worth more in the future due to this growth potential.➡️𝘐𝘯𝘧𝘭𝘢𝘵𝘪𝘰𝘯Inflation erodes purchasing power. A dollar received later buys less than a dollar received today due to rising prices.➡️𝘖𝘱𝘱𝘰𝘳𝘵𝘶𝘯𝘪𝘵𝘺 𝘊𝘰𝘴𝘵Every financial decision involves an opportunity cost. Choosing one option means sacrificing the potential benefits of another. TVM helps compare options by considering the timing of cash flows.𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗽𝗿𝗼𝗳𝗲𝘀𝘀𝗶𝗼𝗻𝗮𝗹𝘀 𝗹𝗲𝘃𝗲𝗿𝗮𝗴𝗲 𝗧𝗩𝗠 𝗶𝗻 𝘃𝗮𝗿𝗶𝗼𝘂𝘀 𝘄𝗮𝘆𝘀:𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗔𝗻𝗮𝗹𝘆𝘀𝗶𝘀TVM helps assess the true value of future cash flows from an investment, allowing for informed decisions about which opportunities to pursue.𝗟𝗼𝗮𝗻 𝗘𝘃𝗮𝗹𝘂𝗮𝘁𝗶𝗼𝗻When evaluating loans, TVM helps determine the true cost of borrowing, considering interest repayments and the time value of money.𝗥𝗲𝘁𝗶𝗿𝗲𝗺𝗲𝗻𝘁 𝗣𝗹𝗮𝗻𝗻𝗶𝗻𝗴TVM is crucial for calculating future retirement needs and setting appropriate savings goals to ensure financial security.~~~~~~~~~~📌 PS. "You can't predict the future, but you can create it" P. Drucker. Use my 𝗖𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗲 𝗙𝗶𝗻𝗮𝗻𝗰𝗲 𝗠𝗼𝗱𝗲𝗹𝗶𝗻𝗴 𝗣𝗮𝗰𝗸𝗮𝗴𝗲 and start creating your financial health today: 👉https://lnkd.in/dAmbWbTD

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Finance modeling E-bookDownload here (no costs) - https://lnkd.in/dEyi2DMb📘 Book content 📙BASICS01 Who do what with finance model02 Steps to create financial model 03 Modeling Best practices04 Input and drivers05 Do and don’ts in modeling06 Scenario analysis types07 factors to forecast sales08 Spreadsheets in the model09 Modeling checklist10 Capital budgeting11 Finance model vs business model12 Old ways vs New ways in modeling13 Finance model vs budget14 Budgeting vs rolling forecast15 14 Finance modelling handbookMODELS & SCHEDULES01 Customer acquisition model02 3 Statements model03 Types of financial models04 Net working capital05 Capex schedules06 LBO model07 Scenario manager08 Strat up finance model~~~~~~~~~~📌If you like to check my Modeling Course, as well you can do it here:https://lnkd.in/daqFvxd9💠 6 Hours of video course sessions 💠 35 lessons divided in 5 modules💠 50+ editabe finance modeling sheets💠 330 pages of PDF

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Capital budgeting >process of investment and measuring the implications for the business. The main goal of capital budgeting: 👇Answer the question:which projects will yield the most return over an applicable period.𝗦𝗰𝗼𝗽𝗲:Identification of Potential InvestmentsEvaluation of InvestmentsEstimation of Cash FlowsRisk AnalysisDecision MakingImplementation and Monitoring𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝗯𝘂𝗱𝗴𝗲𝘁𝗶𝗻𝗴 𝗽𝗿𝗼𝗰𝗲𝘀𝘀1. Defining Project and Assumptions2. Identify potential investment opportunities. 3. Assumption Setting4. Forecasting Cash Flows5. Terminal Value6. Calculation of Financial Indicators7. Sensitivity analysis8. Identify potential risks associated with the project9. Comparison of Projects10. Ranking Projects11. Alignment with Strategy12. Decision Making13. Securing a finance funds14. Implementation and Monitoring15. Post-Implementation Review𝗗𝗿𝗮𝘄𝗯𝗮𝗰𝗸𝘀• Complexity and Time-Consuming• Uncertainty and Risk• Subjectivity in Assumptions• Long-Term Commitment• Cost of Capital Estimation Challenges• Impact of Inflation• Technology and Market Changes• Quantitative Focus• Overemphasis on Financial Metrics_______________________📌 Capital budgeting is one of he main aspects of my 𝗖𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗲 𝗙𝗶𝗻𝗮𝗻𝗰𝗲 𝗠𝗼𝗱𝗲𝗹𝗶𝗻𝗴 𝗖𝗼𝘂𝗿𝘀𝗲. Are your ready for better starting position in 2024?Start here: https://lnkd.in/dZwwg6Wjhttps://lnkd.in/d48-hNNe

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