Corporate Finance
Financial Planning and Strategy
Financial planning converts strategy into cash flows, balance sheets, funding requirements and contingent decisions. The course establishes consistency between growth, returns, capital and liquidity.
Course purpose
The decision examined
A plan is not a sales extrapolation. Operating drivers affect margins, working capital, investment, taxes and the balance sheet, while growth may exhaust liquidity before producing the expected return.
Objectives
Learning outcomes
- Translate strategic drivers into integrated forecasts.
- Identify the amount and timing of external funding.
- Define scenarios, thresholds and contingent actions.
Concepts
Key concepts
- Integrated plan
- External funding
- Sustainable growth
- Scenario
- Liquidity
- Capital allocation
Syllabus
Course structure
- Financial drivers
- Integrated statements
- Planning horizon
- Sustainable growth
- Scenarios
- Funding plan
Extract
Analytical framework
Close the financing balance
When planned uses exceed resources generated internally, the plan reveals an external funding requirement:
External financing requirement
The requirement must be dated. A resource available at year-end cannot finance a cash shortfall that arose several months earlier.
Full course
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