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Basic Cash Flow Analysis

To properly assess any lending opportunity, a lender must answer four questions:

What is causing more cash to go out than come in?
What is going to change?
When is it going to change?
What can go wrong?

Answering these questions identifies the purpose, source of repayment, term and risk in the credit.  A valuable tool for answering these questions is a statement of cash flows.

There are multiple approaches to cash flow analysis and presentations of the statement of cash flows. Each of which has strengths and weaknesses. The approaches to cash flow can be used to analyze historical cash flows and future cash flows.

This workshop will compare and contrast nine approaches to cash flow analysis. Participants will work through the construction and interpretation of the most commonly used.  Students will also use the cash flow statement as a decisioning tool in a series of case studies.

Who Should Attend:
Credit Analysts
Potential Lenders
Lenders with 1-3 years experience

Program Length: One Day