Advanced Cash Flow

Advanced Cash Flow teaches your commercial credit analysts and lenders how to use advanced analysis techniques to fully understand the drivers of a business’s cash flow, and use that understanding to evaluate loan opportunities and craft successful loan structures.

In this one-day, instructor-led workshop, participants first review Decision Strategy™ concepts and the role cash flow plays in credit decision-making. The analytical process begins with an evaluation of data furnished by some of the more commonly used cash flow reporting formats. It then examines whether the minimum acceptable debt service capacity is sufficient, in light of the borrower’s industry, fixed asset requirements, growth, profitability, operating cycle, and other factors.

Then, the focus shifts to three case studies, each of which presents a different cash flow analysis challenge, examines different approaches to cash flow and which is the most appropriate to use, and explores the differences in analytical insights gained from using different approaches. Each case also examines the sustainability of cash flow into the future. The cases are explored in small groups, then large-group guided discussion.

In the first case, participants explore EBITDA measures and the reasons the numbers are what they are, then compare their analysis to the statement of cash flows. They then quantify the drivers and assess the sustainability of cash flow.

In the second case, participants examine a business with rapid sales growth, and must evaluate the current and future impacts of that sales growth on cash flow and borrowing needs.

The final case provides new opportunities to analyze a complex company’s liquidity, leverage, funding sources, and debt coverage, and the facilitator presents the actual outcome of the loan for discussion.

The prerequisite for this course is Commercial Loans to Business (or equivalent training or experience).

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Download the Advanced Cash Flow brochure to learn more about this course.

Available Versions

U.S. GAAP

Course Info

2017 Course Catalog

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Course Info

Course Sample – Commercial Loans to Business (Australia)

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