Series 4: The Cash Cycle, Seasonality and Discovering Borrowing Causes and Repayment Sources
Course Number: ABA
Course Code: ABA
Examining a company’s cash cycle and seasonal characteristics. Learn to interpret both short- and long-term borrowing causes and repayment sources.
Produced by the Risk Management Association
*Only available as a series
- LDP 4.1 – Business Cash Cycles
- LDP 4.2 – Seasonality
- LDP 4.3 – Discovering Borrowing Causes and Repayment Sources
What You’ll Learn
After completing this series, 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
Audience: Loan trainees, credit analysts, and anyone with commercial lending authority.