Cash Flow at Risk: A Tool for Financial Planning

摘要

The company's cash levels can vary considerably over time depending on, payment and collection cycle. Made full and timely payment of sufficient operating capital to keep and disruption of operations, it is important to predict cash levels correctly. Cash Flow at Risk; as well as financial strategies and long-term investment planning based on the scientific basis of creation, it provides an assessment of capital structure. Through different scenarios that may occur rarely even considers events. Through Cash Flow at Risk calculations on a specific date how much cash levels may fall within the confidence interval, how can rise under favorable market conditions can be analyzed. As a result of this analysis, to meet the level of cash payments , the probability of occurrence of certain changes in the cash flow, working capital requirements for market risk are determined in consideration of cash planning is done. The purpose of the study is to evaluate the risks that may arise due to the deviation of cash flows. In this context, based on 2014 budget of a sample business, cash flow at risk will be calculated. To manage the liquidity risk of sample business, an analysis will be carried out in two different scenarios whether to use or not to use a credit.