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
Courses*LDP 4.1 – Business Cash CyclesLDP 4.2 – SeasonalityLDP 4.3 – Discovering Borrowing Causes and Repayment Sources
*Only available as a series
What You’ll LearnIdentify 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 analysisDetermine variations in cash cycles by type of businessDetermine 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 worthDetermine repayment sources that are appropriate matches to each borrowing cause
After completing this series, students will be able to: