Analyzing Business Cash Flow

Credit Analysis with an Emphasis on Cash Flow

Analyzing Business Cash Flow is a one-day workshop that provides a comprehensive look at the concepts of cash flow and the analysis of cash flow statements, with an emphasis on evaluating a company’s borrowing needs and debt repayment ability. This course builds on the learner’s existing credit analysis skills to show how a thorough understanding of cash flow can complement the analysis of the income statement and balance sheet and lead to better credit decisions.

Credit Training Curriculum:

COURSE OBJECTIVES

After completing this course, learners will be able to:

Use a conceptual understanding of cash flow to quickly identify the primary sources and uses of cash for a company
Explain the relationships between the cash flow statement and the balance sheet and income statement
Identify how changes in a company’s working capital may be affecting its cash flow
Compare and contrast different presentations of the cash flow statement
Use cash flow analysis to identify changes in performance, expected repayment ability and potential credit risks
Discuss cash flow and working capital management issues with their clients

COURSE CONTENT

Identifying common sources and uses of cash
Business cash cycles
The effect of working capital changes on cash flow
Cash flow statement presentations
Evaluating cash flow adequacy and debt repayment ability
The pros and cons of commonly used debt service ratios
Implications for transaction structure

COURSE UNITS

Unit 1
Credit Risk Assessment and Cash Flow

Unit 2
Measuring Cash Flow

Unit 3
Analyzing the Cash Flow Statement

Unit 4
Cash Flow and Transaction Structure

Course Materials

Each set of participant materials includes:

Complete explanations of concepts, examples, and exercises with answer keys
Review sections at the end of each module, highlighting key concepts
Case studies allowing the learner to practice each new skill throughout the day

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Target Audience

Analyzing Business Cash Flow is designed for experienced bankers who want to enhance their understanding of cash flow to better interpret credit risk and meet the needs of their clients. It is also appropriate for credit analysts and entry-level bankers who have completed a new hire program.

DELIVERY OPTIONS

This highly interactive one-day workshop is delivered in a classroom setting by experienced Edge instructors.