Analyzing Business Financial Statements Mandatory 2 Part Series 3/2 & 3/9
This is part 1 of an in-depth series designed to increase your proficiency in the essentials of business financial analysis. Case study exercises are used throughout to reinforce the principles and techniques learned.
Part 1 introduces the structure and format of business financial statements, plus the basic ratios and analytical techniques.
NOTE: For more information about Part 2, Business Cash Flow Analysis on March 16 and 30, please review the brochure for that program.
March 2 – Financial Statement & Tax Return Basics
- Introduction to Business Financial Statements & Tax Returns
- Basic structure and purposes of business financial statements
- Compare and contrast the three methods of accounting
- How Business Financial Statements and Tax Returns are Constructed (Accounting Refresher)
- Compare and contrast the cash and accrual method of accounting
- Construct the following for the same example business:
- Balance sheet, income statement and statement of cash flows on both the accrual and cash basis
- Balance sheet (Schedule L), income statement, Schedule M-1 and Schedule M-2 on the cash basis
- Compare and contrast the differences of the financial performance of an example business (cash vs. accrual vs. cash/income tax basis)
March 9 – Key Ratios and Analytical Techniques
- The Basis of Accounting and Type of Statement
- Key standards, limitations and alternatives within accrual accounting or generally accepted accounting principles (GAAP)
- Identify where other comprehensive bases of accounting (cash and income tax) are appropriate and not appropriate
- Identify various levels of accountant-prepared financial statements (compilations, reviews and audits)
- Explain the importance of interim statements
- Ratio Analysis
- Basic guidelines for classifying and spreading the data
- Key components of a balance sheet
- Calculate liquidity and leverage ratios for an example business and interpret the results
- Identify situations with positive or negative working capital
- Common-sizing of the balance sheet
- Key components of an income statement
- Calculate profitability and traditional cash flow measures for an example business and interpret the results
- Calculate efficiency and debt coverage ratios for an example business and interpret the results
- The use of industry and comparative data within financial analysis
Experienced lenders who need an update or confirmation of their knowledge and skills, lenders just beginning to focus on commercial lending, loan review personnel, credit analysts or any banker looking to significantly develop commercial credit skills will benefit. This program is also highly recommended as an introductory or refresher course for bankers planning to attend a commercial lending school.
Richard Hamm has been training bankers for more than 23 years, specializing in all phases of commercial lending and credit: portfolio and risk management, real estate, appraisals, selling and negotiating skills. He has been involved in director training, loan policy formation, bank formation and strategic planning. He owns/operates Advantage Consulting &Training after a 22-year banking career including senior positions in lending and credit.
Institute of Certified Bankers: Visit aba.com/icb/membercereview for instructions regarding self-reporting. Estimated credits: 2 hours CE credit.
Member price: $500.00 | Non member price $1,000.00
Member price: $530.00 | Non member price $1,060.00
Online: Visit the CBA Webinar Catalog
Phone: Call ConferenceEdge at (877) 988-7526 (credit card payments only)
- Preferred Payment Method: Online
- Please register online or by phone when paying with a credit card
- Payment Must Accompany Registration – Invoices are Not Provided
Register online up to day of event. Earlier registration allows time to check your computer for an optimal experience.