What You Will Learn :
- Learn advanced techniques for analyzing a business's cash inflows and outflows and their impact on its capacity to reapy debt.
Learn advanced techniques for analyzing a business’s cash inflows and outflows and their impact on its capacity to reapy debt. Participants review Decision Strategy™ concepts and the role cash flow plays in credit decision-making.
First participants evaluate data furnished by some of the more commonly used cash flow reporting formats. Next, they examine whether the minimum acceptable debt service capacity is sufficient, in light of the borrower’s industry, fixed asset requirements, growth, profitability, operating cycle, and other factors. Then participants examine three case studies, each of which presents a different cash flow analysis challenge.
The cases are explored in small groups, and then large-group guided discussion. The prerequisite for this course is Commercial Loans to Business (or equivalent training or experience).
Upon completion, participants will be able to improve analysis of credit risk and structure credits that address the underlying drivers of cash flow, evaluate a company’s cash flow and ongoing viability, identify the impact of changes in sales levels on cash flow, connect underlying industry characteristics and business strategies with cash flow results, and detect early warning signals from analysis of cash flow and debt service coverage.
Who is this course for?
Anyone responsible for cash flow analysis or credit recommendations, including commercial lenders, commercial relationship managers, commercial credit managers, and credit analysts.