Commercial Financial Analysis (Part 2)

Commercial & Industrial (C & I ) Lending

Analyzing Financial Ratios

Cash Flow Coverage Analysis

Estimating Working Capital Requirements

S-Corporation Tax Return Analysis
Evaluating & Determing Eligible Receivables

Evaluating & Deteming Eligible Inventory



 Our 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 cash 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.

Who should attend?
Prior attendees to Introduction to Financial Analysis or anyone who desires to how to use quantitative and analytical tools in a C & I loan analysis.



Case Study
Attendees analyze a loan request for an owner occupied commercial real estate loan and a working capital line of credit.  Working within a case study, attendees learn how an analyst and/or lender would obtain, process and analyze key financial information.  How to generate a set of key questions and determine the primary strengths and weaknesses of the commercial borrower.

Financial Ratios

Participants learn howto calculate and properly interpret the borrower's key financial ratios covering profitability, liquidity, leverage and debt service coverage, including;

• Return on Sales
• Return on Equity
• Return on Assets
• Current Ratio
• Quick Ratio
• Debt to Worth
• Cash Flow to Current Maturities
• Dividend/Distribution Payout
• Average Age of Acccounts Receivable
• Average Age of Accounts Payable
• Inventory Turnover
• Total Asset Turnover



 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 captial requirements.  We review how to evaluate and determine eligible accounts receivable &  inventory for a borrowing base.  How to review accounts payable credit.

Tools of Financial Analysis
 
Seminar Time:
8:30 am to 4:30 pm

Seminar Fee:
$250 per attendee per seminar.

($625 for an attendee to all  (3) Commercial Financial Analysis seminars.)