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.
- 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.
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