Cash Flow Analysis

The principal goal of this course is to enable you to understand the fundamentals of constructing and analyzing direct and indirect cash flow statements so that a credit analyst will have clearer insight into how a company generates and uses its cash resources. This insight will enhance the quality and effectiveness of the entire credit decision process.

Covered Topics

  • Analyze the company's historical financial performance.
  • Improve the probability of repayment through a solid understanding of cash flow logic and construction.
  • Evaluate sources and uses of cash on the financial statements.
  • Explain the cash conversion cycle.
  • Describe the difference between operating, investing and financing cash flows.
  • Determine if net cash after operations is sufficient to repay interest and principle.
  • Evaluate the company’s financing needs after capital expenditures.
  • Determine if the company used the appropriate mix of short term debt, long term debt and equity.
  • Describe how key financial ratios can affect cash flow.
  • Link the cash flow statement to key ratios and events that are happening in the company.
  • Demonstrate how slight changes in the cash flow drivers can have a big effect on the cash flow statement.
  • Discuss the difference in cash flow methodology including: UCA, indirect, free cash flow, global cash flow and EBITDA.
  • Describe the appropriate covenants to use to protect cash flows.

Who Should Attend?

Commercial lenders, credit analysts, small business lenders, middle market lenders, private bankers; loan review specialists, special assets officers, lending managers and credit officers will benefit from attending this webinar.