Profit and Loss Statements: What A Lender Needs to Know and Ask
This program will examine Profit And Loss Statements and look at ways that they inform us about businesses. Attendees will look at ten questions that can be answered upon a close examination of Profit and Loss Statements. Among those question will be the following1. What is the Composition of Sales?2. Is this a growing business?3. How is Cashflow measured from P & L items?4. What role does depreciation play in cashflow?5. What roles do margins play?Profit and Loss Statements need to be examined by anyone who makes a loan to a business because Profit and Loss Statements tell us a number of things about a business. This program will examine the questions that need to be answered when evaluating the information contained in Profit and Loss Statements. This program will examine cash flow that can be identified as part of a Profit and Loss Statement and how that cash flow can be used to determine repayment ability. Learning ObjectivesHow to measure cashflow based on Profit and Loss Statement informationHow to calculate Gross Profit and Operating Profit MarginsHow to treat depreciation and other non-cash chargesHow to Calculate Debt Service Coverage RatiosHow to identify non-recurring itemsHow to calculate compensationWho Should AttendCredit Analysts, loan officers, branch managers, and Loan Committee members
Single
This program will examine Profit And Loss Statements and look at ways that they inform us about businesses. Attendees will look at ten questions that can be answered upon a close examination of Profit and Loss Statements. Among those question will be the following
1. What is the Composition of Sales?
2. Is this a growing business?
3. How is Cashflow measured from P & L items?
4. What role does depreciation play in cashflow?
5. What roles do margins play?
Profit and Loss Statements need to be examined by anyone who makes a loan to a business because Profit and Loss Statements tell us a number of things about a business. This program will examine the questions that need to be answered when evaluating the information contained in Profit and Loss Statements. This program will examine cash flow that can be identified as part of a Profit and Loss Statement and how that cash flow can be used to determine repayment ability.
Learning Objectives
- How to measure cashflow based on Profit and Loss Statement information
- How to calculate Gross Profit and Operating Profit Margins
- How to treat depreciation and other non-cash charges
- How to Calculate Debt Service Coverage Ratios
- How to identify non-recurring items
- How to calculate compensation
Who Should Attend
Credit Analysts, loan officers, branch managers, and Loan Committee members
