Why EBITDA Doesn't Spell Cash Flow

Monday, February 6, 2023
2:00 – 3:00 pm (Eastern Time)

Description of Topic:   EBITDA is a popular measure of cash flow, but it is not accurate, and bankers and investors who rely on it as a reliable indicator of repayment ability will be deeply disappointed.  The session includes several examples and a case study to illustrate why EBITDA is flawed and how to apply better cash flow tools.

Specific Areas Covered in Session:

• Definition of EBITDA
• Origins of EBITDA—its relationship to traditional cash flow (TCF)
• Problems with TCF, EBITDA, and adjusted EBITDA
• SEC crackdown on EBITDA and adjusted EBITDA
• Alternatives to EBITDA—Operating Cash Flow, Net Cash after Operation, Net Cash Income, Cash after Debt Amortization,  and Free Cash Flow
• Case Study

Who Should Attend:

Credit analysts and credit approvers, commercial bankers and their managers, chief credit officers, loan review officers, commercial underwriters

Instructor

Dev Strischek
Devon Risk Advisory Group / Principal

As the Principal for Devon Risk Advisory Group, Dev Strischek brings years of senior experience in financial services to his clients around the areas of risk policy, risk culture, and portfolio risk management. Dev also serves as a Member of the Private Company Council for FASB. Prior to those roles, Dev served for 18 years at SunTrust Bank, retiring as their Sr Vice President and Senior Credit Policy Officer for the bank. Dev is a frequent industry speaker on many aspects associated with credit risk and compliance, as well as loan policy best practices. He has also authored many industry trade articles on principles and practices, problems and issues relevant to risks that financial organizations must manage.
 

Attendance verification for CE credits provided upon request.

Webinar Sponsored by BankersHUB

If you are having issues with registering online, please contact CBAO's Education, Training & Special Event Coordinator, Malia Widder, (614) 610-1877.