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How is global cash flow analysis performed?

July 31, 2013
Read Time: 0 min

This video is a segment taken from a recent webinar, hosted by Sageworks’ director of advisory services, Chuck Nwokocha and DM Analytics, LLC’s owner, Dave Matricciano. For the full recording, visit “Global Cash Flow Analysis – What, When, Why, and How”.



From the video

A common question by credit analysts is how to perform a global cash flow analysis. According to the Office of the Comptroller Currency’s internal guidance, an analysis of the guarantor’s global cash flow should consider inflows as well as both required and discretionary cash outflows from all activities. This may involve integrating data from multiple partnership and corporate tax returns, business financial statements, K-1 forms and individual tax filings. If you’ve had a visit from regulators, that’s probably what they’ve hammered home. Anything short of a comprehensive global cash flow analysis diminishes confidence in the assessment of guarantor strength, even in the face of significant liquid assets, since that liquidity may be needed to fund contingent liabilities and a global shortfall in cash. 


For more in-depth information on the biggest obstacles credit analysts face with global cash flow, when they must combine business, real estate and guarantor income and debt, download the whitepaper titled: “The Definitive Guide to Global Cash Flow”.

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