12:00 pm – 1:30 pm PT
1:00 pm – 2:30 pm MT
2:00 pm – 3:30 pm CT
3:00 pm – 4:30 pm ET
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.
Continuing Education: Attendance verification for CE credits upon request
- 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
- TAKE-AWAY TOOLKIT
- 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.
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