The World of Global Cash Flow: Is There Enough to Cover All Debts?

Welcome to myCPE

Published

February, 2024

Learning Objectives

To explain the definition of global cash flow.
To identify the cash flow of borrowing entities and guarantors.
To know how to calculate the global cash flow available to pay an existing and proposed debt.
To discuss how to measure repayment ability with a global debt service coverage ratio.

Course Description

The Global cash flow is a tool that breaks down barriers, revealing the amount of money available to bankers once the individual's and the company's fundamental needs have been met.

Global cash flow is critical to analyzing and underwriting commercial borrowers, especially smaller, privately held firms where the owners and the company are so closely bound together that their assets, liabilities, and income are comingled.

This CPE webinar is designed to provide comprehensive insights into the calculation of a company's free cash flow and the evaluation of guarantors' cash flows. These calculations play a pivotal role in evaluating a firm's financial well-being, particularly in scenarios where personal and business finances are closely intertwined.

The webinar places a key emphasis on a detailed examination of both existing and proposed debts, utilizing the perspective of global debt service coverage. Attendees will acquire practical knowledge to adeptly navigate this complex process, ensuring a comprehensive grasp of the company's capacity to manage its debts on a global scale. This webinar provides a valuable opportunity for professionals to enhance their understanding of essential components in financial analysis, contributing to their expertise in assessing and managing financial health in commercial settings.

Major topics covered

Definition of global cash flow (GCF) and global debt service coverage (GDSC)
Review and comparison of various measures of cash flow (CF)
Evaluating borrower-guarantor GCF repayment ability
Adjust guarantor net worth (ANW) to consider as a secondary repayment source
Make credit decisions based on all sources of repayment

Join this CPE Finance course that will show you how to identify and measure cash flows generated by the borrowing entity and its guarantors to see if the global cash flow is enough to repay their debts.

Overview

Good Credit decisions depend on logical evaluation of repayment sources

3 mins
Cash flow fantasies

11 mins
Traditional cash flow (TCF)

19 mins
Why we expect owners/principals to guarantee

32 mins
Global cash flow (GCF)

41 mins

Webinar Qualifies For

1 CPE Credit of Finance for Certified Public Accountants (CPA-US)
1 General Credit of Finance for Accountant/Bookkeeper/Tax Professionals
1 CPD Credit of Finance for CPA in Canada
1 CPE Credit of Corporate Finance for Certified Management Accountants (CMA)
1 CPE Credit of Finance for Certified Valuation Analyst (CVA)
1 CPD Credit of Finance for Accredited in Business Valuation (ABV)
1 CPE Credit of Finance for Chartered Global Management Accountants (CGMA)
1 CPD Credit for Association of Chartered Certified Accountants (ACCA)
1 CPD Credit for Chartered Accountant - ICAEW
1 CE Credit of Financial Planning and Analysis for Certified Treasury Professional (CTP)
1 CPE Credit of Finance for Certified Business Appraiser (CBA)/Master Certified Business Appraiser (MCBA)
1 CE Credit of General finance principles and financial concepts for Certified FP&A Professional (FP&A)
1 CPD Credit for Chartered Accountants - Scotland
1 CPE Credit of Finance for Iowa Licensed Public Accountant (IA-LPA)
1 CPD Credit for Chartered Accountants - Ireland (CAI)
1 CPD Credit for CPA - Ireland
1 CPE Credit of Finance for Maine Licensed Public Accountant (ME-LPA)
1 CPE Credit of Finance for Delaware Licensed Public Accountant (DE-LPA)

About Instructor

Dev Strischek

Principal, Devon Risk Advisory Group, LLC

A frequent speaker, instructor, advisor and writer on credit risk and commercial banking topics and issues, Dev is principal of Devon Risk Advisory Group and engages in consulting, speaking and training on a wide range of risk, credit, and lending topics. As former SVP and senior credit policy officer at SunTrust Bank, Atlanta, he was responsible for developing, implementing, and administering credit policies for SunTrust's wholesale lines of business--commercial, commercial real estate, corporate investment banking, capital markets, business banking and private wealth management. He also spent three years as managing director and credit approver in SunTrust's Florida commercial lending and corporate investment banking areas, respectively. Prior to SunTrust, Dev was chief credit officer for Barnett Bank's Palm Beach region. Besides stints at other banks in Florida, Kansas City, and Ohio, Dev's experiences outside of banking include CFO of a Honolulu construction company, combat engineer officer in the U.S. Army, and college economics instructor in Hawaii, Missouri, and Florida. A graduate of Ohio State University and the ABA Stonier Graduate School of Banking, he earned his M.B.A. from the University of Hawaii.

Dev serves as an instructor at the Stonier Graduate School of Banking, the Southwestern Graduate School of Banking, and the American Bankers Association's (ABA) Commercial Lending School. His school, conference, and workshop audiences have included participants drawn from the ABA, RMA, OCC, Federal Reserve, FDIC, FFIEC, SBA, the Institute of Management Accountants (IMA) and the AICPA. He worked with RMA to develop, implement, and teach its Critical Thinking course.

Dev has written about credit risk management, financial analysis and related subjects for the ABA's Commercial Insights, the Risk Management Association's RMA Journal, the IMA’s Strategic Finance and other business professional journals. He is the author of Analyzing Construction Contractors and its related RMA workshop. A past national chair of RMA and former Florida Chapter president, Dev serves as a member of the RMA Journal's advisory board. He represented the banking industry as a member of the Financial Accounting Standards Board’s Private Company Council, which reviews and recommends changes to existing and proposed generally accepted accounting principles that make them more cost-effective for privately held companies. Finally, he has consulted on credit risk issues with banks in Morocco, Egypt, and Angola through the US State Department's Financial Service Volunteer Corps (FSVC).

Additional Information

Duration

1 Hour

Course Level

Basic

Instructional Method

QAS Self Study

Pre-requisites

None

Advance Preparation

None

FAQ’s

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NASBA APPROVED

MY-CPE LLC, 1600 Highway 6 south, suite 250, sugar land, TX, 77478

MY-CPE LLC (Sponsor Id#: 143597) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.NASBARegistry.org.

Ratings and Review

4.6

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Michael Sowa, CPA (US)

The handout material and the instructor presentation were very informative and made the webinar very useful and helpful in reviewing credit worthiness.