Analyzing financial statements goes beyond EBITDA. Proper analysis focuses on determining a borrower’s financial risk and assessing operating performance and cash flow, debt repayment ability, liquidity, leverage, and profitability. The task is to determine the operating entity’s ability to generate sufficient cash for:
- On-going operations
- Paying interest payments, current portion of long-term debt (CPLTD), and shareholder dividends
- Capital spending on plant, equipment, and other fixed assets
If the operating entity does not generate sufficient cash from operations, it would have a financing requirement. The credit analyst needs to understand what outside sources the operating entity used to get cash and how much cash was obtained from each source. This presentation will address the evaluation of financial risk through the analysis of the borrower’s financial statements.
- Analyzing the cash flow statement
- Operating performance
- Investment activities and capital spending
- External financing activities
- Analyzing repayment ability
- Operating entity
- Global debt service coverage
- Personal cash flow analysis
- Stress testing
- Other underwriting analysis issues
- Liquidity and leverage analysis
- Short- and long-term profitability
- Whether a company can support additional debt
- Employee training log
- Quiz to measure staff learning and a separate answer key
WHO SHOULD ATTEND?
This presentation is for beginning, intermediate, and advanced credit personnel, including credit analysts, commercial loan underwriters and officers, loan review personnel, loan committee members, and credit risk management staff.
PLEASE NOTE: The live webinar option allows you to have one telephone connection for the audio portion and one Internet connection (from a single computer terminal) to view online visuals as the presentation is delivered. You may have as many people as you like listen from your office speaker phone.
ABOUT THE PRESENTER – S. Wayne Linder, Young & Associates, Inc.
A thirty-year banking veteran, Wayne Linder was formerly the CEO of a community bank. As a Senior Consultant with Young & Associates, Wayne works as a lending and management consultant. He assists financial institutions under regulatory enforcement agreements, develops and implements written lending policies, and develops educational material for in-house lending training. Wayne is a popular seminar speaker with both national and international experience.
Originally recorded on January 29, 2019.
Recorded webinar is available until July 31, 2019.
Free Digital Copy included with purchase to download and view beyond link expiration date.
Price includes sales tax.