Recorded: July 21, 2015
Length: 90 Minutes
Attend this proactive webinar and learn a comprehensive approach to financial statement analysis.
The session will begin with a brief review of the four financial statements- Income Statement, Statement of Retained Earnings, Balance Sheet, and Statement of Cash Flows. Additionally, the types of financial statements will be highlighted including "company-prepared, compiled, reviewed, and audited."
The participant will then be introduced to a "five-part" financial statement analysis model which will include the following:
- Liquidity: How to determine the "true" cash position of a company by eliminating certain "current asset" accounts from the Working Capital, Current Ratio, and Quick Ratio calculations.
- Activity: How to correctly interpret a company's Accounts Receivable, Accounts Payable, and Inventory Turnover. The turnover calculations will then be used to determine a company's "Cash Conversion Cycle."
- Leverage: How to calculate the Debt versus Equity position of a business and adjust the calculation through the use of a "Subordination Agreement."
- Operating Performance: How to gauge a company's "true" profitability and the difference between "accrual" versus "cash" basis Income Statements. Additionally, the effect of the timing of the recognition of "revenues" and "expenses" will be reviewed.
- Cash Flow: Calculate, interpret, and apply "cash flow" models including "traditional" EBITDA, Fixed-Charge Coverage, Free Cash Flow (FCF), Cash Basis Cash Flow, and Uniform Credit Analysis Cash Flow (UCA).
Additionally, the related topics of the Z-score (bankruptcy predictor) and the "sustainable growth" models will be reviewed.
A case study will be used to illustrate the various parts of the "five-part" analysis model and the "correct" interpretation of the financial statements.
Audience: Commercial lenders and relationship managers, credit analysts, loan documentation specialists, branch managers, private bankers, and business development officers
Presenter: David L. Osburn, MBA, CCRA; Osburn & Associates, LLC; A Business Training & Contract CFO Firm
1.5 CPE Credits
Program Level: Basic-Intermediate
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