Explains the difference between accounting profit and cash flow. Learners explore why investment analysis focuses on cash generation and how financial statements are interpreted from a cash flow perspective.
Programme overview
This self-paced programme is delivered by our expert Bartosz Tyrała. Many organisations struggle to connect accounting profit with real cash generation, or to evaluate capital investment decisions with confidence. This programme builds practical fluency in cash flow analysis, investment valuation, and capital appraisal. Learners move from cash flow foundations and net working capital mechanics through to discounted cash flow modelling, WACC, NPV, and IRR. Covering ten structured modules, the programme develops the analytical skills needed to assess CAPEX decisions, apply the tax shield effect, forecast incremental investment cash flows, determine the cost of capital, and integrate capital budgeting techniques in a complete case study.
Programme structure
Key Module 1: Accounting Profit vs Cash Flow: Foundations
Key Module 2: Net Working Capital: Mechanics and Cash Flow Impact
Introduces the mechanics of net working capital and explains how changes in receivables, inventory and payables influence cash flow. Learners explore how working capital dynamics affect investment analysis.
Key Module 3: Working Capital Models and Forecasting Techniques
Explains how working capital relationships are represented in financial forecasts. Learners explore how operational assumptions influence projections and how working capital behaviour appears in investment models.
Key Module 4: CAPEX, Depreciation, and the Tax Shield Effect
Introduces the financial effects of capital expenditure and depreciation. Learners examine how depreciation creates tax shields and how these factors influence investment cash flow interpretation.
Key Module 5: Identifying Relevant (Incremental) Investment Cash Flows
Explains how analysts identify incremental cash flows associated with investment decisions. Learners explore how financial analysis isolates cash flows that are relevant for evaluating projects.
Key Module 6: Time Value of Money: PV, FV, and Perpetuities
Introduces the time value of money and explains how present value and future value calculations represent financial trade-offs across time. Learners explore the logic behind financial discounting.
Key Module 7: Cost of Capital and WACC Explained
Explains the concept of cost of capital and the role of WACC in investment appraisal. Learners understand how organisations estimate the expected return required for capital investments.
Key Module 8: Discounted Cash Flow and Terminal Value Estimation
Introduces the structure of discounted cash flow valuation and explains how future cash flows are converted into present value estimates. Learners explore how terminal value represents long-term expectations.
Key Module 9: Investment Decision Tools: Payback, NPV, and IRR
Explains common investment decision tools used in capital budgeting. Learners examine how Payback Period, Net Present Value and Internal Rate of Return are interpreted in financial analysis.
Key Module 10: Integrated Capital Budgeting Case Study
Presents an integrated example illustrating how the different financial concepts combine in a capital budgeting context. Learners see how valuation frameworks are interpreted within a structured scenario.
Outcome and impact
Business Outcomes
After completing this programme, learners understand financial concepts used in investment appraisal and capital budgeting including cash flow analysis, time value of money, NPV and IRR decision logic.
Is this right for you?
This programme is suitable for organisations introducing managers to investment appraisal, or teams involved in projects, capital planning or finance discussions who need structured evaluation methods.
Programme Impact
The programme builds a shared understanding of how investment opportunities are analysed using cash flow and valuation frameworks, supporting clear discussion when evaluating capital investment choice