Financial planning

Corporate financial planning integrates expected operating performance, investment, working capital, financing and cash movements over a chosen horizon. Forecast statements and cash schedules reveal funding needs, potential covenant pressure and the capacity for distributions. Scenario and sensitivity analysis examine uncertainty, and actual outcomes are monitored against assumptions. The plan must be internally consistent: sales growth affects inventory and receivables as well as profit. It is a continuing management process, not a guarantee that the forecast will occur and not merely personal retirement or household investment advice.