What Flavor is Your Cash Flow?

What Flavor is Your Cash Flow?

     Lenders have concluded that understanding cash flow is critical for assessing borrower risk.  The lending problems of the last recession demonstrated the risk of collateral dependent lending. However, it is often apparent that when bankers say “Cash Flow” they don’t always mean the same thing.  There are wide variances in what they understand, which results in misunderstandings.

     The Wisconsin Chapter of the RMA is pleased to present a one day seminar on understanding the various cash flow methods. This includes computation of the different approaches and comparisons, along with their appropriate uses and potential weaknesses. For example, “debt service coverage” is frequently used for real estate enterprises, but it will often give incorrect indications when used on commercial & industry loans. Find out why and how to avoid this problem. The course includes case studies that will give you “hands on” experience with the cash flows.

The seminar will look at the following cash flow methodologies: 

·     Bankers Traditional

·     EBIT

·     EBITDA

·     Fixed Charge Coverage

·     Debt Service Coverage

·     UCA

·     Core Cash Flow

·     Personal Cash Flow

·     Global Cash Flow

      Learn the various meanings of cash flow and how to “speak the same language”!

Purpose

·     Cash flow is at the core of loan repayment

·     With proper cash flow evaluation a lender can identify financial strengths and weakness

·     Understanding the true meaning of cash flow and what it tells you

Who should attend

·     Lenders who want to strengthen their cash flow knowledge and analysis

·     Bankers new to the lending function

·     All Credit analysts, particularly those with limited experience in cash flow

·     Branch managers charged with commercial lending

·     Bankers working in the loan review or audit function

·     Anyone in the bank who wants or needs to develop a better cash flow understanding

·     No accounting training or background is required for this course

SPEAKER: Gary Maples