Business and Community Banking


An introduction to cash flow analysis and forecasting skills for the business and community banker with a focus on the following key disciplines:
  • Cash Flow Statement Derivation:  Introduction to the cash flow statement and how it is derived from the income statement and the balance sheet
  • Cash Flow Statement Objectives:  Review of how the cash flow statement identifies the key operating, investing, and financing decisions taken by the borrower
  • Cash Flow Construction: Introduction to cash flow statement construction and the analytical conclusions drawn from the statement
  • Cash Flow Analysis: Examination of the cash flow statement and how it is used to determine first, the company’s debt servicing capability, and, second, the risks facing the company in the future
  • Cash Flow Statement as Capital Allocation Tool:  review of how the statement highlights how a company has raised and allocated its capital and used the proceeds of its bank loans
  • Cash Flow as Primary Source of Repayment:  analysis of the cash flow statement as a vehicle for forecasting the company’s future cash flows as the primary source of repayment of the bank loan and identifying suitable alternative secondary and tertiary sources of repayment


Through a series of practical exercises and examples, the program will take both the direct and indirect cash flow formats used throughout the U.S. and international markets and apply these formats to real life business banking cases to determine the credit risks in the lending decision. 

The program will also use the cash flow statement to answer the most important questions in cash flow lending:  why companies borrow and how they repay.  The program will also illustrate how analysis of the cash flow statement can be effectively incorporated into the bank’s credit proposal.