In corporate planning practice, the cash flow statement has often been neglected to date, even though it represents a central instrument for ensuring the consistency of integrated corporate planning and for deriving valuation-relevant cash flows. This article addresses this gap by systematically elaborating on the relevance and diverse applicability of the cash flow statement in the context of corporate planning, analysis, and valuation. The aim of the article is to demonstrate, using a continuous case study, how an error-free cash flow statement can be structured and derived from integrated P and balance sheet planning and used to validate the plausibility of the planning calculations. The cash flow statement is used not only as a retrospective control instrument but also as a central basis for risk-based liquidity and cash flow analysis. The scientific contribution of the article consists of presenting a holistic approach to using the cash flow statement as a planning instrument. This ranges from methodologically correct preparation to the performance of control calculations and risk analysis. In doing so, the integration into unbiased planning and the use of Monte Carlo simulation for
risk aggregation are demonstrated. The results show that a methodologically soundly derived
cash flow statement contributes significantly to the identification of planning errors, the quantification of liquidity risks, and the realistic derivation of operating free cash flow. Thus, the article makes a practical and theoretical contribution to strengthening the cash flow statement as an integral component of modern corporate planning.
In corporate planning practice, the cash flow statement has often been neglected to date, even though it represents a central instrument for ensuring the consistency of integrated corporate planning and for deriving valuation-relevant cash flows.
This article addresses this gap by systematically elaborating on the relevance and diverse applicability of the cash flow statement in the context of corporate planning, analysis, and valuation. The aim of the article is to demonstrate, using a continuous case study, how an error-free cash flow statement can be structured and derived from integrated P and balance sheet planning and used to validate the plausibility of the planning calculations.
The cash flow statement is understood not only as a retrospective control instrument but is also used as a central basis for risk-based liquidity and cash flow analysis.
The scientific contribution of the article consists of presenting a holistic approach to using the cash flow statement as a planning instrument. This approach ranges from methodologically correct preparation to the performance of control calculations and risk analysis. In this context, both the integration into unbiased planning and the use of Monte Carlo simulation for risk aggregation are demonstrated.
The results show that a methodologically soundly derived cash flow statement contributes significantly to the identification of planning errors, the quantification of liquidity risks, and the realistic derivation of operating free cash flow.
Thus, the article makes both a practical and a theoretical contribution to strengthening the cash flow statement as an integral component of modern corporate planning.
Youtube Linkedin Envelope Table of Contents Have you ever wondered why, when calculating the standard deviation, we sometimes divide by 𝓷 and sometimes by 𝒏-1?
Youtube Linkedin Envelope Table of Contents In corporate planning practice, the cash flow statement has often been neglected to date, even though it represents a
Youtube Linkedin Envelope Table of Contents In an increasingly volatile and crisis-prone world, traditional deterministic management planning is reaching its limits. Target-value-oriented planning systematically ignores
Youtube Linkedin Envelope Table of Contents Exactly 100 years ago, in 1925, Werner Heisenberg published his groundbreaking article: 👉 “On the Quantum-Theoretical Reinterpretation of Kinematic
The semi-standard deviation (also downside deviation) measures the dispersion below a reference value (usually the mean or a target return such as 0%).
Many reluctantly recall their statistics lectures: formulas, variance, standard deviation – and the question: What’s the point of it all? However, standard deviation holds a real treasure: it is a central tool in modern risk management.
