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
LDP 4.1 – Business Cash Cycles
LDP 4.2 – Seasonality
LDP 4.3 – Discovering Borrowing Causes and Repayment Sources
*Only available as a series
What You’ll Learn
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
After completing this series, students will be able to: