Tools of Financial Analysis
The Commercial Financial Analysis series continues with training on how to use and properly interpret the key quantitative tools of financial analysis. Special emphasis in the seminar is devoted to analyzing a Commercial & Industrial (C & I) loan. Working within a case study, attendees calculate & analyze the financial ratios, cash flow coverage and working capital requirements of a commercial borrower. Attendees learn how to derive cash flow from the federal tax return and related schedules of an S Corporation.
We analyze a loan request for an owner occupied commercial real estate loan and a working capital line of credit. Attendees learn how an analyst/lender would obtain, process, and analyze financial information.
We discover how to generate a set of key questions and determine the primary strengths and weaknesses of the borrower.
Participants learn how to calculate and properly interpret the borrower's key financial ratios covering profitability, liquidity, leverage, and debt service coverage, including,
Cash Flow Analysis
Using the borrower's 1120S (S Corporation) federal tax return, Schedule L, M-1, M-2 and K-1, attendees construct a cash flow statement, evaluate projections and analyze the borrower's capacity to service debt. Emphasis given to factors that could impact the global cash flow and debt service capacity.
Working Capital Analysis
Attendees learn how to estimate the borrower's working capital requirements. We review how to evaluate and determine eligible accounts receivable & inventory for a borrowing base. How to review accounts payable and overall vendor credit.
|Seminar meets from 9:00 am to 5:00 pm||(Central Time)|
|Session||Tools of Financial Analysis|