All finance lessons

Cash Flow and Business Performance

Explain the gap between profit and cash, then diagnose the operating drivers.

Lessons in order

Build each skill in sequence, or jump to a topic you need to review.

  1. Profit versus cashFoundation · Ready to start
  2. Build an indirect cash flow bridgeIntermediate · Ready to start
  3. Read a receivables ageing scheduleIntermediate · Ready to start
  4. Measure the cash conversion cycleIntermediate · Ready to start
  5. Model inventory and supplier daysIntermediate · Ready to start
  6. Explain a margin changeIntermediate · Ready to start
  7. Assess earnings qualityIntermediate · Ready to start

Capstone case

Use the numbers to defend a decision in two steps.

Find the distributor’s missing cash