Forecasting Cash for Companies-The Case of CATL

CATL, as a provider of power batteries, is now regarded at the top of the world. It is not only a company in hot business that responds to carbon neutralization policy but also a high-value stocks concerned by investors. However, it is now faced with fierce market competition and many uncertainties. Our paper has identified and analyzed uncertainties like more intense competition and exploration of new business to see what will happen owing to these issues. We researched for ample information about the possible future condition for CATL from resources like the official website of the company, research reports from financial experts, and also financial database. Then, we forecasted by including the possible future market share and new business-battery swap business. After that, several autoregression models (Applicated Software: Stata & Excel) were established to forecast required accounting items such as capital expenditure and debt issuance and finally we got the simulated future cash flow statement of CATL. Based on the simulation, we analyzed future cash conditions for CATL influenced by the new market structure and battery swap business, concluding that this company won’t face liquidity problems. In general, our paper conducted a forecast of CATL’s future cash condition based on the predicted situation. More importantly, we emphasize the significance of cash forecast and management because forecasting in advance will be beneficial for corporations to deal with predicted troubles and then grow sustainably. Since our simulation method is easy-understanding and convenient-for-use, it can be applied by most companies to forecast future financial situations as well.