Tying the income statement and balance sheet together to determine overall financial strength is within your reach. This informative webinar will address that issue and delve into more advanced analytical tools to improve your analysis of financial statements.
AFTER THIS WEBINAR YOU’LL BE ABLE TO:
- Understand the relationship between the balance sheet and income statement, which is required to know the logic behind ratio analysis and to know how to convert an accrual income statement into a cash basis statement
- Use standard ratio analysis to structure short-term loans via net working investment analysis
- Determine the financial impact on cash flow resulting from changing balance sheet metrics and income statement margins
- Utilize the entire balance sheet and income statement to determine true cash flow
This webinar is designed to address the needs of credit analysts, commercial/consumer lenders, and anyone tasked with analyzing financial data. It will expand participants’ understanding of financial statements and use this as a foundation to explore more advanced analytical tools to better understand borrowers’ financial performance.
This webinar will begin by examining a commercial and industrial type financial statement and reviewing detailed credit, ratio, and cash flow analysis, tying the income statement and balance sheet together to determine overall financial strength. This information will be used to determine proper short-term loan structuring by calculating the net working investment, which is the financing gap created when cash from the operating cycle is not collected before payments to suppliers of goods and services are due. Also, a financial impact analysis will be demonstrated to determine the cash flow impact on a company from changes in balance sheet financial ratios and income statement margins such as gross profit, operating profit, and net profit margins. Cash flow analysis using the Uniform Cash Analysis will be reviewed and compared to the commonly used traditional and EBITDA methodologies.
WHO SHOULD ATTEND?
This in-depth webinar will benefit anyone involved in credit analysis and credit administration, including credit analysts, branch managers, consumer and commercial lenders, loan review personnel, senior loan officers, senior credit officers, CFOs, CEOs, presidents, and COOs.
- Financial statement mapping worksheet
- Net working investment calculation worksheet used to structure short-term loans
- Formulas to determine financial impact on cash flow from changes in balance sheet metrics and income statement margins
- Modified uniform cash flow analysis form to determine true cash flow
- Employee training log
- Interactive quiz
SPEAKER: Jeffery Johnson, Bankers Insight Group
Jeffery Johnson has been in financial services more than 40 years. He has been VP and senior lender for a large regional bank and SVP and commercial banking division manager for a community financial institution. Most of his career has been spent in credit administration, lending, business development, loan review, management, and training and development. Over the last 17 years, Jeffery has provided training for several banking associations and individual financial institutions nationwide.
Jeffery holds a bachelors in accounting from Morehouse College in Atlanta, an MBA in finance from John Carroll University in Cleveland, a Diploma of Graduation from the Prochnow School of Banking at the University of Wisconsin-Madison, and a Graduate Certificate in Bank Management from the First American Management Institute at the University of Pennsylvania’s Wharton School of Business.