Does your bank rely heavily on EBITDA (earnings before interest, taxes, depreciation, amortization) methods of evaluating cash flow? EBITDA analysis is often a good place to start when analyzing a commercial loan request. However, it does not account for the effects that things like dividends, distributions, capital asset purchases or sales, or changes in turnover ratios, can have on a business’s cash available for debt service. In 1988, the Financial Accounting Standards Board put forth the Statement of Cash Flows, which gave rise to the Uniform Credit Analysis cash flow, enabling accountants and analysts to more accurately determine sources and uses of cash within a business. When incorporated with ratio and industry analyses, credit analysts can readily determine the focus of borrower management and anticipate future financing needs, as well as support risk ratings with meaningful, insightful cash flow analysis. This webinar will introduce in-depth concepts, thoroughly review examples, and provide tools that can be used immediately to provide solid repayment analysis.
Attendance verification for CE credits provided upon request.
Who Should Attend?
This informative session will be most beneficial for beginning- to intermediate-level credit analysts, loan officers, and portfolio managers. Business development officers and other new commercial business generating personnel will also benefit because of the insights into future credit needs of borrowers. Workout or problem loan personnel will benefit, as the UCA will highlight where, when, and how financial challenges begin for a borrower and how they can be addressed.
If you are having issues with registering online, please contact CBAO's Education & Training Coordinator, Lianne Simeone, (614) 610-1877.