cash-flow-forecasting

Cash flow forecasting applies both direct receipts/disbursements and indirect methods derived from net income to project liquidity. It generates weekly forecasts and reconciles them to the indirect P&L statement.

13-week cash flow planning requires payroll calendars, accounts receivable aging, accounts payable aging, and capex schedules. These inputs generate a weekly forecast that surfaces liquidity gaps and projects working capital needs.

Cash flow projections calculate DSCR and liquidity runway directly from forecasted receipts and disbursements. The metrics support scenario analysis and stress testing to evaluate debt service coverage under varying conditions.

Cash flow scenario analysis stress tests working capital by modeling adjustments to AR/AP timing, payroll schedules, and capex commitments. This approach identifies liquidity gaps and measures runway impact across multiple forecast scenarios.

Cash flow forecasting supports 12 to 24 month long-term projections alongside 13-week weekly forecasts. Both horizons reconcile to the indirect P&L and incorporate payroll, AR/AP aging, and capex schedule inputs.

Cash flow forecasts reconcile to the indirect P&L by bridging net income through working capital changes and non-cash adjustments. Ensure AR/AP aging and capex schedules align with the same reporting period to achieve reconciliation.