Cash Impact Analysis and Management Assessment
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In this 2nd course of the Cash Flow Statements Vs. Proxies for Risk Assessment Skill Series, participants will learn to compute cash inflows and outflows from sales growth, EBITDA%, and changes in accounts receivable, inventory, and payable days, refining borrowing causes and identifying management strengths and weaknesses.
Certificate
1 credit or $295
Cost
1.5 - 2 Hrs.
Duration
1 hr.
Prep Time
1
Quiz
Overview
In this second session of the Course, which runs approximately two hours including a rest break, participants explore and master the methodology for computing the dollar amount of cash inflow or outflow from sales growth and from changes in EBITDA%, accounts receivable days, inventory days, and accounts payable days. In doing so, they confirm, clarify, reduce, or expand the operating borrowing causes identified Session 1 as well as identify the areas of management strengths and weaknesses in controlling a company's income statement, balance sheet, and operating cash flow.
Who Should Attend
This Course is ideal for participants currently in or aspiring to enter the following job functions:
- Credit Management
- Commercial Credit Administration
- Commercial Real Estate Administration
- Commercial Loan Administration
- C & I Lending
- CRE Lending
- Corporate Lending
- Private Banking
- Loan Review
- Special Assets
- Internal Audit
- Construction Lending
- Non-Profit and Municipality Lending
- Health Care Provider Lending
- Specialized Lending
- Credit Analysis
Prerequisites
A sound working knowledge of the construction and use of the UCA cash flow statement and, preferably, participation in Session 1 of the Course.
Objectives
By the end of the session, participants will be able to:
- Identify the likely reasons a borrower failed to generate sufficient business cash flow to service its debt, given a completed UCA cash flow statement and a set of financial performance measures.
- Quantify the cash impact of changes in EBITDA%, accounts receivable, inventory, and accounts payable days and determine whether these collective changes contributed to or reduced business cash flow available to meet debt service.
- Quantify the cash impact of sales growth or decline and determine whether sales growth contributed to or reduced business cash flow available to meet debt service.
- Determine if the changes in EBITDA%, accounts receivable, inventory, and accounts payable days add to or reduce the cash impact of sales growth or decline.
- Assess a borrower's ability to effectively manage its income statement and balance sheet, and identify areas of success and failure and their relevance to company cash flow performance.
- Identify the critical issues management must address if the borrower is to achieve sufficient business cash flow in the coming year to properly service its debt.
Materials(access provided with registration)
- Credit Refresher on Balance Sheet Management
- Credit Refresher on Income Statement Management
- Excerpts from the Financial Statements
- Exercise for the Webinar
- Webinar Presentation Slides
- Webinar Poll Questions
- Webinar Poll Solutions
- Exercise Solutions
This is Course 2 of 4 in the Cash Flow Statements Vs. Proxies for Risk Assessment Skill Series
UCA Cash Flow, Traditional Cash Flow and EBITDA
Cash Impact Analysis and Management Assessment
FASB 95 Cash Flow Statement conversion to UCA
Cash Flow Proxies, Debt Capacity, and the UCA Cash Flow Statement
