Analyzing Financial Statements
You will learn all about how to start the analysis process, how the FASB and SEC operate together and where you can find audited financial statements and how to retrieve them. We will cover auditor’s opinions and what they mean. We will discuss the objectives of analysis management, learn tools and techniques such as common sizing financial statements and trend analysis. We will cover the five categories of ratios: Liquidity, Activity, Leverage, Profitability and Market ratios. The session will go into reviewing a company that we have all the financial statements for and applying all the techniques mentioned above and showing the ratios, DSO calculations and summary to management explaining the findings and requesting a credit line. Other parts of the session will cover the Altman Z score and how its calculations can give you a strong sense if a company will go bankrupt within the next twelve months. All this will then be summarized, and conclusions will be drawn to make a solid credit decision on whether a loan should be granted or a line of credit can be granted.Areas Covered Analyze the Balance Sheet, Income statement and Statement of cash flows.Reviewing the four auditor’s opinionsLearning the ratios that can be derived from the above financial statementsHaving the meaning of the ratios explained and how to put them all together to derive a conclusion Learning about the Altman Z score and its effectivenessWriting a financial summary for managementTying everything together to makeWho Should AttendCredit AnalystsCollectorsCredit ManagersBank OfficersLoan OfficersWhy Should You AttendIf you have audited financial statements and you are trying to do one of the following: Approve a loan for them, looking to acquire them, looking to apply for a job at that company or set them up with a line of credit then you need to attend this session. In this session you will learn how to read a balance sheet, an income statement and a statements of cash flows which will give you a good insight into the strength and weakness of the company. From the financial statements you will also learn what ratios you need to pull from, which statement, what the ratios mean and how to use them in helping with your decision.You will then learn how to write up all your findings in a summary to present to management and determine a line of credit or loan amount if you determine they are credit worthy.
You will learn all about how to start the analysis process, how the FASB and SEC operate together and where you can find audited financial statements and how to retrieve them. We will cover auditor’s opinions and what they mean. We will discuss the objectives of analysis management, learn tools and techniques such as common sizing financial statements and trend analysis. We will cover the five categories of ratios: Liquidity, Activity, Leverage, Profitability and Market ratios. The session will go into reviewing a company that we have all the financial statements for and applying all the techniques mentioned above and showing the ratios, DSO calculations and summary to management explaining the findings and requesting a credit line. Other parts of the session will cover the Altman Z score and how its calculations can give you a strong sense if a company will go bankrupt within the next twelve months. All this will then be summarized, and conclusions will be drawn to make a solid credit decision on whether a loan should be granted or a line of credit can be granted.
Areas Covered
- Analyze the Balance Sheet, Income statement and Statement of cash flows.
- Reviewing the four auditor’s opinions
- Learning the ratios that can be derived from the above financial statements
- Having the meaning of the ratios explained and how to put them all together to derive a conclusion
- Learning about the Altman Z score and its effectiveness
- Writing a financial summary for management
- Tying everything together to make
Who Should Attend
- Credit Analysts
- Collectors
- Credit Managers
- Bank Officers
- Loan Officers
Why Should You Attend
If you have audited financial statements and you are trying to do one of the following: Approve a loan for them, looking to acquire them, looking to apply for a job at that company or set them up with a line of credit then you need to attend this session. In this session you will learn how to read a balance sheet, an income statement and a statements of cash flows which will give you a good insight into the strength and weakness of the company.
From the financial statements you will also learn what ratios you need to pull from, which statement, what the ratios mean and how to use them in helping with your decision.
You will then learn how to write up all your findings in a summary to present to management and determine a line of credit or loan amount if you determine they are credit worthy.
