Overview
This webinar emphasizes a practical approach to correctly “interpret” financial statements.
The session will begin with a brief review of the four basic financial statements: income statement, statement of retained earnings, balance sheet and statement of cash flows. In addition, the “types” or quality of financial statements will be covered, including company-prepared, compiled, reviewed and audited. The notes to the financial statements also will be highlighted.
The participant will then be introduced to a “five-part” financial statement analysis model covering liquidity, activity, leverage, operating performance and cash flow.
The liquidity section will illustrate how to calculate the “true” cash position of the company, and the activity section will include accounts receivable, accounts payable and inventory turnover and the “cash conversion cycle.” The leverage section will review the debt to equity model and the impact of a subordination agreement while the operating performance section will review how to gauge the company’s “true” profitability. The cash flow section will show how to determine the company’s “traditional” EBITDA, fixed-charged coverage, cash basis cash flow and uniform credit analysis cash flow.
Additionally, a brief overview of both the Z-score (bankruptcy predictor) and sustainable growth models will be provided.
Case studies will be presented to illustrate the main concepts associated with financial statement analysis and will clarify this often challenging subject.
Objectives
- the four financial statements
- income statement
- statement of retained earnings
- balance sheet
- statement of cash flows
- types or quality of financial statements, including company-prepared, compiled, reviewed and audited
- notes to the financial statements
- a “five-step” financial statement analysis model covering liquidity, activity, leverage, operating performance and cash flow
- the “Z-score” and “sustainable growth” models
- financial statement analysis case studies
Who Should Attend
commercial lenders and relationship managers, credit analysts, loan documentation specialists, branch managers, private bankers and business development officers
CPE Continuing Education
CPE will be granted to registered attendees upon request.
Specialized Knowledge – 6 credits
Instructional Delivery Method: Group Live
Prerequisites: Advance knowledge of bank practices.
Program Level: Advanced
Advanced Preparation: None
Presenter
David L. Osburn, MBA, CCRA
Osburn & Associates LLC
David is the founder of Osburn & Associates LLC, a business training and contract chief financial officer firm. His extensive professional background spanning more than 30 years include work as a business trainer/contract CFO and work as a bank commercial lender, including the position of vice president/senior banking officer. His banking credentials include loan underwriting, loan workout management and business development.
Osburn holds the professional designation of Certified Credit & Risk Analyst as granted by the National Association of Credit Management.
For More Information
Contact the MBA Education Department at 573-636-8151 or email.