CASH FLOW MANAGEMENT IN BUSINESS ADMINISTRATION
The poor cash flow management is a widespread issue of the companies in Romania. 90% of the insolvent companies registered an issue related to the cash flow structure before becoming insolvent.
The receipts received and the payments made by any company are divided into three categories: operational (deriving from the basic activity of the company), investment-related (deriving the from the activity of investment in fixed assets) and financial (deriving from the transactions with creditors and shareholders). Generally, a stable company, which shows a low risk of becoming insolvent is able to generate the major part of its cash from the operational activity (this representing the source) while the investment activity represents the destination (the utilization of the cash for technological upgrading) and the financial activity alternates depending on the extent of the investment opportunities. The insolvent companies have generated cash mainly from the financial activity (loan contracting) or from the operational activity in a non-sustainable manner (extension of the payment terms to the suppliers) while the utilization of the cash in investment has not led to the increase in revenues or profits to a sufficient level so as to cover the financing cost.
All these aspects are exemplified in the course by the practical case studies and by the solutions recommended. The cash flow analysis is applied to real companies by illustrating a failure compared to a success!
At the end of the course, the participants will be able to understand:
- the alternatives by which a company may generate cash
- how the sustainability of the cash flow model may be assessed
- under what conditions and for how long a company which does not generate cash in a sustainable manner can survive
- the techniques to assess the vulnerability of the company’s treasury in situations of stress scenarios
- the main financial indicators which refer to the liquidity situation
- the techniques for the recognition of revenues / expenses, as well as their impact on the financial indicators
- how the companies in Romania generate cash depending on the business sector
The personnel involved in the control and credit risk management departments of the banks and other financial institutions, financial advisors, as well as economists / financial analysts working in companies from various fields of activity.
The course is structured in this manner in order to provide pragmatic methodologies used in the financial analysis and to facilitate their integration in day-to-day practice
- Analysis of the operational, investment and financial cash
- Alternatives by which a company may generate cash
- Assessment of the sustainability of the cash flow model
- Methods of analysis of the cash flows
- Application of stress scenarios related to the treasury evolution under adverse conditions (non-collection of debts, decrease of revenues, limited restructuring, increase of interests)
- Assessment of the company’s situations with the diagnosis of the capacity of adaptation and streamlining of activity in special crisis situations
INTRODUCTION OF THE LECTURER – Iancu Guda, CFA, EMBA
Iancu GUDA is responsible for the development of the service lines as General Manager of Coface Credit Management Services, having an experience of more than 12 years in credit risk management within the company. Since 2013 he has been an associate lecturer with the Romanian Banking Institute where he teaches advanced financial analysis and corporate finance courses within the CEFA program. Also, since 2017 Iancu has been authorized by the Financial Supervisory Authority (ASF) for the position of Independent Administrator in the Board of Directors of BRD Asset Management.
Educational background After graduating from the Faculty of Finance, Insurance, Banks and Stock Exchange (FABBV) within the Academy of Economic Studies (ASE), Iancu successfully completed the DOFIN – European Center of Excellence program in 2010, he obtained all the three CFA certification levels in 2016, and he holds the license of ANC trainer (National Authority for Qualifications). Since November 2014 Iancu has attended the EMBA courses of the Sheffield University which he successfully completed (degree with honors) in 2016.
Research activity During his professional career within Coface, Iancu has published more than 100 analyses, impact studies and articles in the local and international business publications. Between 2016-2017 Iancu wrote his first book De Ce Esuează Companiile?/Why Do the Companies Fail? 10 Greșeli și 100 Soluții/10 Mistakes and 100 Solutions , Publica Publishing House, thus marking 10 years of professional experience in credit risk management.
Volunteering projects Since March 2012 Iancu has been an active member of AAFBR (Association of Financial and Banking Analysts in Romania – www.aafbr.ro) and he has taken over the responsibility of Vice President for the period 2014-2016, followed by the mandate of Chairman of the Executive Committee of AAFBR for the period 2016-2018 and was reelected for 2018-2020 new mandate as President. Iancu is also an active member of other renowned associations such as CFA Romania and the Association of Treasurers of Romania.
The duration of the course is of 8 hours (one day)
September 20, 2019, between 9:00 – 17:00
RBI will hold the course on its premises, providing specialised lecturers, course materials and catering services during the training day.
At the end of the course, the participants will receive a certificate issued by IBR (under the aegis of the founding members: BNR and ARB), with 14 credits of continuous professional development (CPDs).
LANGUAGE: Romanian (or English, upon request)
Short Term and ANC Cources Unit
Mobile phone: 0748.886.846; e-mail: email@example.com