Financial Statement Analysis (In-Person Only)

October 24, 2023

Member Fee:  $265
Non-Member Fee:  $465

Want to learn how to analyze business financial statements in a compact, case-based day?  Want a comprehensive reference guide to use as you work with business financial statements?  Want to move beyond calculating the ratios to be able to better analyze the results?  This workshop is your answer, whether you are new to lending and financial analysis, or even if you have been away from financial analysis for a while and need a refresher.  (Bring your calculator and pencil!)

Topics include:

Introduction to Business Financial Statements

  • Financial statement analysis options and tools, plus the basic structure and purposes of financial statements
  • Introduction to the three methods of accounting

How Business Financial Statements are Constructed (Accounting Refresher)

  • Compare and contrast the cash method and accrual method of accounting
  • Construct a conventional balance sheet, income statement and statement of cash flows on both the cash and accrual basis for an example business (case)

More on Accrual Accounting Typically Used by Larger Businesses

  • Key standards, limitations and alternatives within accrual accounting or generally accepted accounting principles (GAAP), including recent lease accounting changes
  • Why other comprehensive bases of accounting (cash and income tax) are appropriate for many smaller businesses
  • Identify various accountant-prepared financial statements (compilations, reviews and audits)

Ratio Analysis

  • Basic guidelines for classifying and spreading the data
  • Identify the key components of a balance sheet
  • Calculate liquidity and leverage ratios for an example business and interpret the results
  • Identify situations with positive or negative working capital
  • Describe common-sizing of the balance sheet
  • Identify the key components of an income statement
  • Calculate profitability and traditional cash flow measures for an example business and interpret the results
  • Calculate efficiency and debt coverage ratios for an example business and interpret the results

Appendix: Overview of Personal Financial Statement Components

  • A “three-step” approach to reviewing and analyzing a personal financial statement (PFS), plus key features of bank-provided formats for a PFS, including assets and liabilities, reported income, and contingent liabilities

Credit analysts, portfolio managers, assistant relationship managers, community bankers, small business lenders, commercial lenders, consumer lenders, branch managers that lend to business owners, private bankers, special assets officers, loan review specialists and others involved in business and commercial lending.

Richard Hamm has been training bankers for 30+ years, designing and delivering programs specializing in commercial lending and credit, including portfolio and risk management, commercial real estate (CRE) and appraisals, plus selling and negotiating skills, and director training. He is based in Huntsville, AL and has owned/operated Advantage Consulting & Training for 15+ years, after a 22-year banking career including senior positions in lending and credit, plus president of a community bank through formation and acquisition of an existing bank. During his banking career he was active within RMA’s chapter structure, plus serving on several committees at the national level.  He has written over 20 articles for The RMA Journal and still serves on The Journal’s Editorial Advisory Board.  He has created several courses for RMA, including the first versions of Global Cash Flow and Construction Loan Administration.  He has also been involved in updating, editing and teaching most of RMA’s commercial real estate courses. In 2010 he served as subject matter expert for RMA’s e-learning/online The Commercial Real Estate Lending Decision Process curriculum. In 2012 Richard edited, updated and revised ABA’s long-standing textbooks Commercial Lending and Analyzing Financial Statements, as well as provided content for an electronic curriculum based on both books.  The content was again updated in winter 2018-2019 and winter 2019-2020 to add content on fraud and anti-money laundering, asset-based lending and CRE lending. Starting in 2016, he has been facilitating periodic “senior lender forums” for state banking and community banking associations, currently with eight groups across three states, as well as quarterly and annual senior lender events for the Barret School of Banking. He has BS and MBA degrees from the University of Alabama

Due to commitments we must make, if you must cancel your registration for this program, please do so at least 3 business days prior to the meeting date to avoid a $125 cancellation fee. Any registrant who does not cancel will be billed the full registration fee and sent the materials. Substitutions are welcome at no additional charge.

10/24/2023 9:00 AM - 4:00 PM
LBA/The Bankers Center 5555 Bankers Avenue Baton Rouge, LA 70808 UNITED STATES

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