Global Cash Flow
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In this 1st course of the Cash Flow Analysis & Applications Skill Series, participants will review financial reporting conventions, explore related company cash flows, construct global cash flow statements with guarantor support assumptions, and assess liquid personal assets in credit decisions.
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Certificate
1 credit or $295
Cost
1.5 - 2 Hrs.
duration
1 hr.
Prep Time
1
Quiz
Overview
Participants review the reporting conventions, e.g., financial year-end dates, which must prevail for the creation of a global cash flow statement, then explore cash flows among and between related companies with common ownership and among and between the companies and the owners. They construct a global cash flow statement under various assumptions about a guarantor's financial contribution and support, including future support based on personal cash flow and personal liquid assets. Participants examine the impact on the global cash flow statement from limitations imposed on cash outflows from one or more related companies to the guarantor. They assess an analytical process that features highly liquid personal assets as the best estimate of guarantor financial support in a crisis in constructing and using the global cash flow statement in the credit decision process.
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 both the Uniform Credit Analysis (UCA) cash flow statement and personal cash flow statements.
Objectives
By the end of the webinar, participants will be able to:
- Identify the information requirements necessary to track cash flow movements between related companies with common ownership.
- Identify the relevant balance sheet accounts and personal financial statement information that provide the necessary information to track movements in cash between related companies and their owners.
- Identify the cash providers and cash users among the related companies and their common owner and reach tentative conclusions about cash cows and cash hogs among the related companies and their owner.
- Assess the initial messages about cash cows and cash hogs by reference to the modified Uniform Credit Analysis (UCA) cash flow statements for each related company.
- Use information in the cash flow computations and UCA cash flow statements to identify the likely reasons for pressure on future cash flows individually by company and collectively by related companies and their common owner.
- Use the historical information in the cash flow computations and UCA cash flow statements to understand the implications about future debt service for a single borrower within the group of related companies and determine if the related company cash flow pressures would benefit or impede the borrower's ability to properly service its interest-bearing debt.
Materials(access provided with registration)
- Credit Refresher on Global Cash Flow vs. Global Cash Support
- Financial Regulators' Policy Statement on Prudent Commercial Real Estate Workouts
- Excerpts from Financial Statements for Clovis Supply, Inc., Fresno Properties LLC, Modesto Services, Inc., and Sequoia Properties
- Personal Financial Statement, Personal Cash Flow Statement, and Personal Income Tax Returns for Fritz Schumacher
- Exercise for the Webinar
- Webinar Presentation Slides
- Webinar Poll Questions
- Webinar Poll Solutions
- Exercise Solutions
This is Course 1 of 5 in the Cash Flow Analysis & Applications Skill Series
Global Cash Flow
Working Capital and UCA Cash Flow
Ratio Messages On Profitability and Cash Flow
Covenant Use in Controlling Cash Outflows
Debt Capacity and Cash Flow
