|Event Date||Tue Jun 15 EDT (4 months ago)|
This Is designed to address the needs of credit analysts, commercial/consumer lenders, and anyone tasked with analyzing financial data. It will expand participants’ understanding of financial statements and use this as a foundation to explore more advanced analytical tools to better understand borrowers’ financial performance.
This will begin by examining a commercial and industrial type financial statement and reviewing detailed credit, ratio, and cash flow analysis, tying the income statement and balance sheet together to determine overall financial strength. This information will be used to determine proper short-term loan structuring by calculating the net working investment, which is the financing gap created when cash from the operating cycle is not collected before payments to suppliers of goods and services are due. Also, a financial impact analysis will be demonstrated to determine the cash flow impact on a company from changes in balance sheet financial ratios and income statement margins such as gross profit, operating profit, and net profit margins. Cash flow analysis using the Uniform Cash Analysis will be reviewed and compared to the commonly used traditional and EBITDA methodologies.
• Understand the relationship between the balance sheet and income statement, which is required to know the logic behind ratio analysis and to know how to convert an accrual income statement into a cash basis statement.
• Use standard ratio analysis to structure short-term loans via net working investment analysis.
• Determine the financial impact on cash flow resulting from changing balance sheet metrics and income statement margins.
• Utilize the entire balance sheet and income statement to determine true cash flow.
• Financial statement mapping worksheet.
• Net working investment calculation worksheet used to structure short-term loans.
• Formulas to determine financial impact on cash flow from changes in balance sheet metrics and income statement margins.
• Modified uniform cash flow analysis form to determine true cash flow.
• Employee training log.
• Interactive quiz.
WHO SHOULD ATTEND?
This in-depth will benefit anyone involved in credit analysis and credit administration, including credit analysts, branch managers, consumer and commercial lenders, loan review personnel, senior loan officers, senior credit officers, CFOs, CEOs, presidents, and COOs.
Jeffery W. Johnson
MBA, Bankers Insight Group