Predictive Financial Decision Models for Cash Flow Optimisation in Saudi Manufacturing Companies

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@article{1725155,
      author = {Mohamad Rabie Yakout},
      title = {Predictive Financial Decision Models for Cash Flow Optimisation in Saudi Manufacturing Companies},
      journal = {Iconic Research And Engineering Journals},
      year = {2026},
      volume = {10},
      number = {5},
      pages = {2808-2819},
      issn = {2456-8880},
      url = {https://www.irejournals.com/formatedpaper/1725155.pdf},
      abstract = {In manufacturing, liquidity depends not only on how much a company sells but also on when customers pay and when suppliers, employees and lenders must be paid. The timing of these flows makes cash forecasting a practical management decision rather than an exercise in projecting accounting balances. This critical review examines how predictive financial models might improve cash management in Saudi manufacturing companies in the context of Vision 2030. We examine thirty peer-reviewed studies published from 2020 to 2025, covering working capital, invoice payment forecasting, probabilistic time series, optimisation and financial governance. The literature shows why greater forecasting accuracy does not automatically lead to better decisions: a model may predict cash balances well while encouraging payment or inventory policies that damage operations. We therefore develop a conceptual approach that joins reconciled accounting data, customer payment patterns, production commitments and liquidity scenarios to realistic management actions. Its value should be judged through avoided cash shortages, financing costs and the ability to maintain production, alongside forecasting accuracy and explainability. Direct evidence from Saudi manufacturing treasury remains limited. The review identifies practical safeguards and a programme of research to test whether these approaches improve real decisions rather than merely produce more sophisticated forecasts.},
      keywords = {Cash flow forecasting, financial decision intelligence, manufacturing, working capital, liquidity risk, Saudi Vision 2030, predictive optimisation},
      month = {November},
  }