RicherFin Education

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.

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.

Learning outcomes

  • Translate strategic drivers into integrated forecasts.
  • Identify the amount and timing of external funding.
  • Define scenarios, thresholds and contingent actions.

Key concepts

  • Integrated plan
  • External funding
  • Sustainable growth
  • Scenario
  • Liquidity
  • Capital allocation

Course structure

  1. Financial drivers
  2. Integrated statements
  3. Planning horizon
  4. Sustainable growth
  5. Scenarios
  6. Funding plan

Analytical framework

Close the financing balance

When planned uses exceed resources generated internally, the plan reveals an external funding requirement:

External financing requirement

External financing = Uses of funds − Internal resources

The requirement must be dated. A resource available at year-end cannot finance a cash shortfall that arose several months earlier.

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