Module 3: Cash Flow Management
Topics
1. Types of Cash-Flow
• Operating, investing, and financing cash flows give a complete view of a company’s cash position
• Key Insight: Positive cash flow from operations is critical for sustaining daily business activities, while investing cash flow reflects the company’s commitment to long-term growth (CapEx and R&D)
2. Cash-Flow Management Strategies
• Efficient working capital management, accurate forecasting, and careful CapEx planning are essential for maintaining liquidity
• Key Insight: In the chemical industry, managing working capital (inventory, receivables) is vital, while defense contractors must manage delayed payments and milestone-based revenues
3. Industry-Specific Challenges
• Cash flow issues in both industries arise due to long contract cycles (defense) and fluctuating input costs (chemicals)
• Key Insight: Proactive management of cash inflows and outflows is critical to navigating volatility and ensuring sustainable operations