Analyzing Financial Statements is a practical introduction to financial analysis from the viewpoint of the commercial loan officer. This program gives you the skills you need to effectively assess the borrower’s ability to repay loans.
Commercial and/or business bankers and credit analysts.
This AIB course focuses on understanding business industries and types, plus why they borrow money. It also introduces basic concepts of business financial accounting and entity structures and explains the analysis of business financial statements and tax returns, including cash flow statements. Finally, the course discusses personal financial statements and tax returns, as well as combining business and personal cash flows into a global analysis.
After successfully completing this program, you will be able to:
• Explain the operating cycles of various business industries
• Analyze the financial data and evaluate the risks of the different industries
• Define the basic types of legal structures available to a business
• Describe the general characteristics of the four stages in the business life cycles
• Explain the different types of financial statement preparation
• Describe operating expenses and net profit analysis
• Identify balance sheet considerations
• Describe the considerations a lender needs to take into account when using ratios to evaluate financial performance
• Explain how to use industry data when performing a ratio analysis
• Identify cash flow statements and reports
• Compare the formats of the banker-prepared UCA cash flow model and the accountant-prepared statement of cash flows (SCF)
• Describe why a cash budget is a critical tool of financial statement analysis
• Describe the basic formats for personal financial statements
• Identify the information that is reviewed and verified prior to analyzing the personal financial statement
• Calculate and interpret the liquidity ratio, unsecured debt ratio, and debt-to-income (DTI) ratio
• Use tax return information to develop a personal cash flow
• Develop a global cash flow and global DSC for a borrower