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Series 3: Analyzing the Company’s Financial Performance and Financial Condition

The Lending Decision Process and the courses in the curriculum are products of The Risk Management Association.

In this series, Trainees will interpret repayment risks suggested by the company’s historical financial performance and financial condition.

 

Duration: Approximately 12 hours.

 

Audience: Loan trainees, credit analysts, and anyone with commercial lending authority.

 

Learning Objectives: After completing this course, students will be able to:

  • Apply financial statement spreading techniques to reclassify accounts and provide details needed to prepare financial statements for credit analysis
  • Convert financial statements to a format that expresses accounts as percentages of total sales of or total assets
  • Compute a company’s liquidity using various ratios
  • Analyze a company’s ability to meet its short- term obligations
  • Determine how a company’s industry sector influences it financial statement characteristics
  • Compute a company’s leverage using various ratios
  • Analyze a company’s ability to meet its long-term obligations
  • Determine how a company’s industry sector influences it financial statement characteristics
  • Calculate and analyze a company’s profit margins
  • Perform a trend analysis on a company’s profitability
  • Compare a company’s profitability with industry composites
  • Compute and analyze a company’s productivity ratios
  • Compare a company’s productivity trends with industry composites
  • Compute and analyze a company’s efficiency ratios
  • Compare a company’s efficiency trends with industry composites

 

The courses included in Series 3: Analyzing the Company’s Financial Performance and Financial Condition Curriculum are:

  • LDP 3.1 – Spreading Financial Statements
  • LDP 3.2 – Analyzing the Balance Sheet
  • LDP 3.3 – Analyzing the Income Statement
  • LDP 3.4 – Analyzing Combined Balance Sheet and Income Statement Measures

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