Cash Flow in Credit Risk and Forecasting

Cash is a fact. Many investors, burned by the trust they have placed in reported earnings in an era of questionable accounting, have turned their focus to cash flow as the only trustworthy measure of financial performance available. The present book shows the reader how to restate published cash flows into a more user-friendly format and then interpret the resulting data. It provides an effective approach to cash flow analysis that focuses on the fundamental drivers of sustainable cash flow. The book is unique in that much attention has been paid to the use and development of a little-known methodology of cash flow analysis, worked out by Timothy Jury, for assessment of credit risk and performance measurement, which is complemented by the comparison of an accrual-based credit risk model to the cash-based credit risk model. This book is intended for both business students and business professionals – for treasurers, controllers, financial directors, budget analysts, and business consultants involved in the analysis of credit risk and financial performance. (c) Jaan Alver. Ph.D., Professor of Accounting, Emeritus, Tallinn University of Technology