Description
Reviews terms and steps associated with analyzing financial statements. Explains how tax returns report income and expenses from another perspective. Examines the computation and meaning of four categories of financial ratios and how ratios are used to spot significant trends. A perfect way to get a starter for beginning the advanced three credit course – Analyzing Financial Statements.
Updated: June 2017
Re-versioned: July 2016
What You’ll Learn
After successfully completing this course, you will be able to:
- Define financial statement analysis and explain its importance in the small business lending process
- List the basic steps of financial statement analysis and the purpose of each step
- Analyze an income statement and balance sheet
- Explain how tax returns are used in the lending process
- Calculate and interpret key ratios
- Perform a simple cash flow analysis
Audience
Bank personnel who are responsible for reviewing financial statements for the purpose of assisting in making lending decisions, monitoring the ongoing health of the business, or conducting the initial financial analysis.
Award Application and Career Pathing
Introduction to Analyzing Financial Statements applies toward the completion of the following certificates and diplomas:
- Advanced Commercial Loan Assistant Certificate
- Cash Management Certificate
- Certified Modern Branch Professional – Level 2
- Consumer Lending Diploma
- Introduction to Lending Diploma
- Small Business Banker Certificate
ABA / AIB / CFT