Overview
This financial and lending webinar on financial condition is the companion piece to “How to Assess a Borrower’s Operating Performance" (Sept 14, Noon ET), which explained to bankers, lenders and credit professionals how to:
- Evaluate a borrower’s operating performance—revenue generation, productivity, efficiency, and profitability--as they analyze the information disclosed in its income statement.
- Identify the critical elements of the profit and loss statement and their roles in driving a business borrower’s operating performance.
- Judge a borrower’s operating performance trends and results against industry averages
This financial and lending training moves from the income statement to the balance sheet to evaluate a borrower’s liquidity, leverage and solvency. A borrower with a positive operating performance and a sound financial condition is able to generate the cash flow to repay.
Learning Objectives
- Learn how liquidity, leverage, and solvency are interrelated among themselves and how they interact with operating performance and cash flow
- Learn how to analyze and interpret internal trends in liquidity, leverage, and solvency and then compare them to industry averages to evaluate their impact on repayment ability
Topics covered in the session:
- Liquidity—borrower’s ability to meet its short-term obligations
- Current / Quick Ratios
- Working Capital Analysis
- Leverage-borrower’s ability to balance its sources of funds from creditors and owners
- Various ratios to measure the proportion of support provided by owners and creditors
- Ensuring matching of short-assets with short-term debt, long-term assets with L-T debt
- Solvency-borrower’s ability to internally sustain its asset base, pay its obligations, and reward its owners
- Measures for determining the ability of the firm to simultaneously satisfy the expectations of lenders and owners while maintaining the earning assets of the firm
- Sustainable growth vs. actual growth
- Use of industry ratios to measure borrower’s financial condition to its peers
BONUS MATERIAL: A case study is used to demonstrate how to evaluate financial condition
Check out and register for the companion webinar (Sep 14, 12pm ET): Operating Performance – Profitability, Productivity and Efficiency
Or Save $$ and register for BOTH webinars...just $395 A $195 Savings!
Click here for the 2-part Series