Mihai Tataran - Cash flow prediction using Machine Learning, especially during exceptional times
Predicting Balance Sheet items and Cash Flow is a major challenge for today’s CFOs around the world, and it became exceptionally important during a cataclysmic event like the Coronavirus pandemic. They have been struggling with such topics for years, and most of the implementations we’ve seen are ranging from either something very naïve like extrapolating on past data to something a bit more scientific like extrapolating and including some external variables while applying some functions on that data.
All such approaches fail to rigorously apply the right relative “weights” of those external variables. In this session I will show how to find the external variables which actually determine the end result, calculating the coefficient of determination, embed that into the Machine Learning model, and then be able to predict better results.