Series 4: The Cash Cycle, Seasonality, and Discovering Borrowing Causes and Repayment Sources

Course Number: RMA4

Course Code: ABA 171D

Examining a company’s cash cycle and seasonal characteristics. Learn to interpret both short- and long-term borrowing causes and repayment sources.

Courses include:
LDP 4.1 – Business Cash Cycles
LDP 4.2 – Seasonality
LDP 4.3 – Discovering Borrowing Causes and Repayment Sources

Learning Obj​​​​ectives
After completing this course, students will be able to:
– 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 Commercial Real Estate Lending Decision Process and the courses in the curriculum are products of The Risk Management Association.

Audience: Loan trainees, credit analysts, and anyone with commercial lending authority

Prerequisites: n/a

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Member Price: $150.00
Non-Member Price: $300.00
Textbook Charge: $0.00

Credits: ICB: 9.75 CLBB

Length: 8 hours

ABA Training