Ratio Analysis to Determine Financial Strength
Credit (Risk) Analysis is one of the most important functions performed by financial institutions.
Since interest and fee income from loans represent the largest source of revenue for financial institutions, it is vital that thorough credit analysis be performed before loans are approved and funded.
The Credit Analysis process starts with spreading historical financial statements and then calculating key ratios to determine the financial health of an organization. The purpose of this course is to expose the participant to the five vital signs of any organization and the required ratios to identify them. A detailed identification and definition of ratios will be covered.
- Current / Quick Ratios
- Working Capital Analysis
- Defensive Interval Ratio
- Activity Ratios for Working Capital Assets
- Activity Ratios for Working Capital Liabilities
- Ratios to Measure the Proportion of Support Provided by Owners and Creditors
- Asset Management
- To Measure the Ability of Management to Utilize Their Assets to Generate Sales and Profits
- Performance Ratios to Measure the Relationship Between Sales, Costs and Expenses and How Their Changes Affect the Bottom Line
- Cash Flow
- Uniform Cash Analysis to Determine the Sources and Uses of a Firm’s Cash as a Means of Serving Long-Term Debt
After attending this session, the participant will have a deeper understanding of ratio and credit analyses during the underwriting process. This should translate into well organized and clearly written credit memoranda where the participant will be more confident in explaining trends and the financial impact on customers and prospects.
- Credit Analysts
- Commercial Lenders
- Consumer Lenders
- Senior Credit and Loan Officers
- Loan Review Officers
- Branch Managers
Jeffery W. Johnson started his career with SunTrust Bank in Atlanta as a Management Trainee and progressed to Vice President and Senior Lender of SouthTrust Bank and Senior Vice President and Commercial Banking Division Manager for Citizens Trust Bank of Atlanta.
Most of his career has been spent in Credit Administration, Lending, Business Development, Loan Review, Management and Training & Development. He has managed loan portfolios representing a cross section of loan types including: Large Corporate, High Net Worth Individual, Middle Market Companies, Small Business, Real Estate and Non-Profit Organizations.
Mr. Johnson is now a training professional in the financial industry by leading various seminars covering important topics relating to issues in financial institutions. He teaches actively for fifteen state banking associations in the United States, Risk Management Association (RMA) and individual financial institutions nationwide. He co-authored a training course entitled “Lending to Service and Other Professional Organizations” for RMA in 2001.
Mr. Johnson earned a B.A. Degree in Accounting from Morehouse College in Atlanta; a MBA in Finance from John Carroll University in University Heights, Ohio; Banking diploma from Prochnow School of Banking at the University of Wisconsin and a Graduate Certificate in Bank Management from the Wharton School of Business at the University of Pennsylvania.
Institute of Certified Bankers: Visit http://www.icbmembers.org/login.aspx for instructions regarding self-reporting. Estimated credits: 2.5 CE Credits.
Either Live or 6-Month On-Demand Webinar: $255
Both Live and 6-Month On-Demand Webinar: $355
Online: Click here.
Phone: Call Total Training Solutions at (800) 831-0678
Register online up to day of event. Earlier registration allows time to check your computer for an optimal experience.