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.

Prerequisites: None

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

Credits: 10 CLBB


ABA Training