Overview
Cash Flow Cycles and Analysis Course Overview
In this Cash Flow Cycles and Analysis course, we look at how companies manage their cash flow. We will explore both the operating cash flow cycle and the investing cash flow cycle. We use real-world examples to calculate a company’s working capital funding gap. Then we will go over important strategies companies can use to optimize their working capital accounts.
From there we will look at the longer-term investments such as sustaining or expansionary capital expenditures. We will assess the payback time on a project and look at the return on investment.
In the end, we’ll combine what we learned and produce a cash flow statement to compare key metrics such as net income, EBITDA, cash flow from operations, and free cash flow.
Throughout the course, we’ll be looking at things from both the lender’s perspective and the borrower’s perspective so you’ll have a full picture as a complete credit analyst of how to forecast and optimize cash flow for a business.
Cash Flow Cycles and Analysis Learning Objectives
Upon completing this course, you will be able to:- Discuss the difference between a company’s short-term operating cash flow and long-term investing cash flow
- Compare working capital objectives and capital investment objectives
- Calculate working capital funding gap, investment payback and return on investment
- Use a company’s financial statement to conduct a cash flow analysis and compare key metrics
Who should take this course?
This Cash Flow Cycles and Analysis course is perfect for any aspiring credit analysts working in insurance, underwriting, rating agencies, commercial lending, corporate credit analysis, and other areas of credit evaluation.Prerequisite Skills
Recommended skills to have before taking this course.
- Excel
- Critical thinking
- Financial accounting
Cash Flow Cycles and Analysis
Led by
Tim Vipond
Level 3
1h 2min
100% online and self-paced
Field of Study: Finance
Start LearningWhat you'll learn
Lesson
Multimedia
Exams
Files
Operating Cash Flow Cycle
Operating Cash Flow Cycles Overview
Total Working Capital and Operating Working Capital
Inventory
Accounts Receivable
Accounts Payable
Interactive Exercise 2
Working Capital Cycle
Working Capital Funding Gap
Funding Gap and Operating Line Calculator Overview
Calculate Receivable Days, Inventory Days, and Payable Days
Calculate Operating Line Required and Allowed
Download Completed Funding Gap and Operating Line Calculation
Improving the Working Capital Cycle - Accounts Payable
Improving the Working Capital Cycle - Accounts Receivable
Improving the Working Capital Cycle - Inventory
Working Capital Objectives
Streamline Efficiency
Optimize Liquidity
Interactive Exercise 3
Investing Cash Flow Cycle
Working Capital vs. Investing Capital
Capital Investment (Capex)
Types of Capital Investments
Long-term Capital Investment Cycle
Payback and Return on Investment
Download Completed Payback and ROI Calculation
Making Capital Investments Work for You
Capital Investment Objectives
Interactive Exercise 4
Conclusion
Qualified Assessment
This Course is Part of the Following Programs
Why stop here? Expand your skills and show your expertise with the professional certifications, specializations, and CPE credits you’re already on your way to earning.
Commercial Banking & Credit Analyst (CBCA®) Certification
- Skills Learned Financial Analysis, Credit Structuring, Risk Management
- Career Prep Commercial Banking, Credit Analyst, Private Lending
What Our Members Say
Great course, but...
As many other courses I took at CFI, this one is great. However I wish there are more examples for other type of business, e.g. service company or online data service company. Phoebe Matthews-Cheng
Fantastic Course with outstanding Delivery
Its one of the fantastic course with outstanding delivery by Tim.
The best part of courses by Tim is that he uses case studies during the course to make it better easy to understand for us, however in other courses i have observed that instructor shares course study and ask us to solve by our own, but this is not the case with Tim. Which helps to understand case study very well along with course itself. Vikash Yadav
All subject are good and challenging
all Are excellence I Subagia
One of the best courses if you work in the Light Asset back Lending space!!
I highly recommend this course to better understand lending contracts where your collateral is based on future cash flows!
Miguel Angel Bonilla Martinez
Frequently Asked Questions
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