12:00 pm – 1:30 pm PT
1:00 pm – 2:30 pm MT
2:00 pm – 3:30 pm CT
3:00 pm – 4:30 pm ET
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.
Continuing Education: Attendance verification for CE credits upon request
- Pay-back analysis: comparing EBITDA analysis to UCA – strengths and weaknesses of both
- How to prepare a statement of cash flows
- Detailed analysis of each section: operations, investments, financing
- Incorporating UCA concepts into a loan analysis and/or approval memo
- Using UCA to determine customer management strategies
- Taking credit analysis to the highest levels of confidence in predicting future cash flows
- Policy and procedure enhancements to incorporate UCA into your day-to-day analysis
- TAKE-AWAY TOOLKIT
- Manual that details the presentation and policy/procedure suggestions
- Examples that can be referenced for any borrower and any situation
- Employee training log
- Quiz you can administer to measure staff learning and a separate answer key
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.
NOTE: All materials are subject to copyright. Transmission, retransmission, or republishing of any webinar to other institutions or those not employed by your financial institution is prohibited. Print materials may be copied for eligible participants only.