Corporate and Commercial Banking


An introduction to basic cash flow analysis and forecasting skills with a focus on the following key disciplines:
  • Cash Flow Construction:  Introduction to the cash flow statement and how it is derived from the income statement and the balance sheet
  • Cash Flow Analysis:  Review of how the cash flow statement identifies the key operating, investing, and financing decisions taken by the borrower
  • Impact of Working Capital on Cash Flow:  Analysis of working capital movements and their relative impact on the cash flow statement highlighting the difference between cash flow and reported earnings
  • Cash Flow and Management Evaluation:  Examination of your bank’s cash flow statement and how it is used to determine first, a company’s debt servicing capability, and, second, the risks facing the company in the future
  • Cash Flow Forecasting:  Analysis of the cash flow statement as a vehicle for forecasting the company’s performance
  • Cash Flow and the Role of Bank Debt:  Development of techniques for highlighting the role of bank debt in a borrower’s cash flow cycle with a particular emphasis on why it is borrowed and how it will be repaid


Taking both the direct and indirect cash flow formats used in U.S. banking, the program will examine these formats and apply them to real life corporate and commercial banking examples to help participants identify the credit risks in the lending decision. 
These cases will emphasize the importance of the cash flow statement in highlighting the shortcomings of income statement and balance sheet analysis alone, and underpin the criticality of using a cash flow statement to identify the company’s capacity for sustainable debt service capability.

Finally, the program will also show why companies borrow, how they repay, as well as how the cash flow statement can be effectively incorporated into writing the bank’s internal credit proposal.