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Webinar Categories
- Key Elements in Commercial Business Analysis (1)
- Key Elements in Income Producing Property Analysis (1)
- Contractor Analysis (2)
- Healthcare Provider Analysis (3)
- Not for Profits and Municipality Analysis (3)
- Cash Flow Analysis (9)
- Projections and Debt Service (2)
- Conditions for Business Success (1)
- Loan Documentation (2)
- The Credit Write-Up (3)
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Webinars : filtered to view 'Cash Flow Analysis'Copy / Share Link
...credit analysis for good and bad times
Webinar Topics (9)
Description
Enrollment Dates
1. Ratio Messages On Profitability and Cash Flow
... all ratios are not equally relevant
Participants identify a handful of key performance ratios among the vast array generated by computer output that explain the accrual and cash position of a business so that they may better use their time in assessing the core issues that determine borrower profitability and business cash flow. They explore the impact of movements in these key performance ratios - the Business Driver performance ratios - on borrower profitability, retained earnings, and business cash flow. In addition, they examine the relative role and importance of each Business Driver performance ratio in explaining bottom line profit, business profit, business cash flow, changes in working capital, and changes in leverage. In the process of doing so, Participants review the Uniform Credit Analysis (UCA) cash flow statement and identify the reasons its debt service messages may differ significantly from those based on cash flow proxies such as traditional cash flow.
2. Advanced UCA Cash Flow Analysis Part 1
... digging deeper
Participants examine the construction and use of the Uniform Credit Analysis (UCA) cash flow statement for borrowers with income statement and balance sheet accounts that require considerable review and assessment in classifying accounts as operating events, investing events, related party events, or financing events. They identify the misleading risk messages that can emerge should critical accounts be improperly classified - or improperly spread in a financial analysis software system - and assess the possible impact on a credit decision.
3. Advanced UCA Cash Flow Analysis Part 2
... digging deeper
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 and clarify the operating borrowing causes suggested in the Advanced UCA Cash Flow: Part I of II webinar and more closely identify the areas of management strengths and weaknesses in controlling a company's cash flow from operations.
4. Working Capital and UCA Cash Flow
... is working capital really cash flow?
Participants explore the business forces that drive and determine changes in working capital. They examine whether changes in working capital provide clear signals about a borrower's ability to service interest-bearing debt from operating cash flow. They identify the underlying reasons for changes in working capital, e.g., an increase in profitability or an increase in long-term liabilities, and their impact on a borrower's operating cash flow. Further, Participants explore the conflicting signals about operating cash flow from changes in working capital accounts on the Uniform Credit Analysis (UCA) cash flow statement. They assess the predictive usefulness of changes in working capital about subsequent operating cash flow and explore the proper use of both working capital analysis and UCA cash flow analysis in fully understanding the source of cash to service interest-bearing debt.
5. Global Cash Flow
... borrower and guarantor cash flows are not the same thing
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.
6. Minimum Financial Data for Assessing Borrower Risk
... when is not enough really enough?
Participants develop a framework for identifying the minimum financial information for a business borrower and guarantor necessary for making a credit decision. They determine the minimum number, and acceptable quality, of financial statements required to assess a borrower's historical profitability and cash flow performance. They identify the fatal flaws in borrower financial statements that preclude a useful analysis of borrower profitability and cash flow performance. Further, Participants explore the usefulness of the Uniform Credit Analysis (UCA) cash flow statement in overcoming a set of common deficiencies in the quality of borrower financial statements. In addition, they identify the minimum financial information for a guarantor necessary to determine the guarantor's dependency on company cash flow and his or her ability to provide financial support to the company in a financial or cash flow crisis.
7. Tax Returns vs. Accrual Statements in Assessing Borrower Risk
... half a loaf may not be good enough
Participants explore risks associated with overlooking the role and impact of distributions and withdrawals in assessing borrower profitability and business cash flow for non-Subchapter C companies. In addition, they examine risks associated with limiting cash flow analysis to traditional cash flow - net income + non-cash charges - thereby ignoring the impact of changes in balance sheet accounts on a borrower's ability to service its interest-bearing debt from business cash flow. Further, Participants address risks associated with use of unadjusted business income tax return information in conducting ratio and cash flow analysis. Finally, they review and examine the importance of fully incorporating the balance sheet into commercial business analysis using accrual financial statements rather than business income tax returns.
8. Covenant Use in Controlling Cash Outflows
... cash leakages and cash plugs
Participants identify those documents that report the cash exit routes - or cash outflows - from pass-through entities, such as Subchapter S corporations and partnerships, to owners and partners. They identify cash flow escape routes via a company's inability to effectively manage its accounts receivable, inventory, accounts payable, and accrued liabilities, i.e., its operating balance sheet accounts. In addition, Participants examine the benefits and limitations of debt service coverage covenants based on cash flow proxies - traditional "cash flow" and EBITDA - in controlling the cash exit routes. Further, they explore the benefits and limitations of cash flow covenants based on Net Cash after Operations, a key summary account in the Uniform Credit Analysis (UCA) cash flow statement, in controlling all company cash outflows. Finally, they assess the benefits of two specific debt service coverage covenants that, in combination, work to control the cash exit routes and the operating cash outflows.
9. Debt Capacity and Cash Flow
... it all begins with accrual profit
Participants explore the concept of debt capacity and its importance in assessing a borrower's prospects for properly servicing its interest-bearing debt. They identify the roles of dividends, distributions or withdrawals, income taxes, and loans to owners or partners in arriving at an estimate of existing and prospective debt capacity. In addition, Participants determine reasons for apparent conflicts between debt capacity estimates and actual operating cash flow. They review the importance of quality financial information in validating debt capacity estimates and they identify the range of corrective measures available to both borrower and lender should a borrower's debt capacity fail to support outstanding, or proposed, interest-bearing debt.