Traditional "Cash Flow"
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Participants compare traditional cash flow statements with UCA cash flow statements to assess cash sources for debt service, borrowing causes, and financing requirements.
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| Self-Study | Add to Cart |
Certificate
0.5 Credit
Cost
1 hr.
Duration
n/a
Prep Time
1
Quiz
Overview
In this short self-study course, participants examine the stated and implied messages provided by traditional "cash flow", i.e., by net income plus non-cash charges, about the cash source of borrower debt service, the financing requirement, and the likely borrowing causes for the period in question. They compare and contrast the messages from traditional "cash flow" with those from the UCA cash flow statement about the cash sources of debt service, the likely borrowing causes, and the borrower's financing requirement.
Who Should Take This Course
Analysts and lenders interested in identifying the differences in messages provided about borrower performance from traditional "cash flow" and UCA cash flow statements and assessing the value of using the UCA cash flow statement in place of traditional "cash flow".
Prerequisites
Familiarity with cash flow proxies such as traditional "cash flow" and EBITDA and some exposure to the UCA cash flow statement.
Objectives
By the end of the course, participants will be able to:
- Assess the importance of the balance sheet and balance sheet information in migrating from traditional "cash flow" to an actual business cash flow statement.
- Explain why all messages provided by traditional "cash flow" must be confirmed by reference to, and use of, the UCA cash flow statement.
- Explain why it is prudent to discard traditional "cash flow" as an analytical tool and use the UCA cash flow statement in its place.
Materials(access provided with registration)
- Credit Refresher on Traditional "Cash Flow"
- Online Quick Hit Review Quiz
- Webinar Poll Solutions
- Exercise Solutions
