Tying the income statement and balance sheet together to determine overall financial strength is within your reach. This informative webinar will address that issue and delve into more advanced analytical tools to improve your analysis of financial statements.
- Understand the relationship between the balance sheet and income statement, which is required to know the logic behind ratio analysis and to know how to convert an accrual income statement into a cash basis statement
- Use standard ratio analysis to structure short-term loans via net working investment analysis
- Determine the financial impact on cash flow resulting from changing balance sheet metrics and income statement margins
- Utilize the entire balance sheet and income statement to determine true cash flow
This webinar is designed to address the needs of credit analysts, commercial/consumer
lenders, and anyone tasked with analyzing financial data. It will expand participants’
understanding of financial statements and use this as a foundation to explore more
advanced analytical tools to better understand borrowers’ financial performance.
This webinar will begin by examining a commercial and industrial type financial statement
and reviewing detailed credit, ratio, and cash flow analysis to determine financial strength.
This information will be used to introduce short-term loan structuring by calculating the
net working investment, which is the financing gap created when cash from the operating
cycle is not collected before payments to suppliers of goods and services are due. Also, a
financial impact analysis will be demonstrated to determine the cash flow impact on a
company from changes in balance sheet financial ratios and income statement margins
such as gross profit, operating profit, and net profit margins. Cash flow analysis using the
Uniform Cash Analysis will be reviewed and compared to the commonly used traditional
and EBITDA methodologies.