Series 4: The Cash Cycle, Seasonality and Discovering Borrowing Causes and Repayment Sources
ABA SELF-PACED ONLINE TRAINING
Examining a company’s cash cycle and seasonal characteristics. Learn to interpret both short- and long-term borrowing causes and repayment sources.
- LDP 4.1 – Business Cash Cycles
- LDP 4.2 – Seasonality
- LDP 4.3 – Discovering Borrowing Causes and Repayment Sources
Loan trainees, credit analysts, and anyone with commercial lending authority.
- Identify and measure cash cycles using days’ sales in receivables and days’ COGS in inventory and accounts payable.
- Identify the benefits and limitations of cash cycle analysis
- Determine variations in cash cycles by type of business
- Determine the effects of seasonality of business operations on the cash cycle.
- Interpret budgets of cash receipts and disbursements to estimate the amount and duration of seasonal borrowing needs.
- Identify the benefits and limitations of analyzing interim financial statements.
- Differentiate between seasonal and permanent asset and liability levels.
- Identify borrowing causes including sales growth, change in asset efficiency, change in trade credit, fixed asset expenditures, and change in net worth
- Determine repayment sources that are appropriate matches to each borrowing cause
The Lending Decision Process
The New York Bankers Association is a Local ABA Training Provider.
NYBA Professional Development at (212) 297-1679