Attend this proactive webinar and learn an in-depth approach to financial statement analysis. The participant will be introduced to a five-part 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 rates will then be used to determine (and later improve) a company’s cash conversion cycle.
- Leverage: How to calculate the debt versus equity position of a business and use/misuse the subordination agreement
- Operating Performance: How to gauge a company’s true profitability and the impact of 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 several cash flow models including traditional EBITDA, Fixed-Charge Coverage, Free Cash Flow (FCF), Cash Basis Cash Flow, and Uniform Cash Flow Analysis
Additionally, the related topics of the Z-score (bankruptcy predictor) and the sustainable growth models will be reviewed.
An in-depth case study will be used to illustrate the various parts of the five-part model and allow the attendee experience in calculating and correctly interpreting the numbers.
Target Audience:
Commercial lenders, commercial relationship managers, credit analysts, loan administrators
