Using of sensitivity analyses method in financial planning An Empirical study in Al- Maha trading Company

Abstract

The financial planning is the importance function for financial management, and the sustainability of an organization in businesses market is threw sealing needed funds to continuing its production and marketing activities, and keeping its market dividend. Therefore, the financial planning is the real way to facing the internal and external risks by take care from all effects and side effects on its activities, added to any economics changes like inflation indicator and the prices oscillation. Therefore, the two core goals of financial management is be sure there is enough financial funds to keep business sustainability, and trying to growing the rate of investments. Because of the financial planning and the forecasting based on assumptions, some of these assumptions have high degree of confidence , but the other only just Educated guesses, therefore this study tried to use sensitivity analyses approach to testing the changing in input/output of variables , and its impact on decisions. Threw Trying to measure the impact of the change in inputs, in the calculation of net cash flow during the next three years