Financial Statement Analysis: Reading the Numbers Correctly

Author: David Osburn

CPE Credit:  2 hours for CPAs

Attend this proactive training session and learn to think like a banker, work more like a consultant than a CPA, and get way beyond the numbers! This webinar emphasizes financial statement analysis using a practical approach to reading financial information. A banker's review of standard financial statements will be followed by an in-depth display of financial ratios and cash flow analyses.

The participant is also provided techniques to determine a company's true cash flow position, a personal cash flow approach, and a real estate cash flow scenario. Two case studies are presented to reinforce the financial analysis concepts using the Moody’s Risk Analysts spreadsheet and industry comparisons.

This course will also outline how banks make commercial credit decisions using established analytical techniques and concludes with a review of the Z-score (bankruptcy predictor) and sustainable growth models.

Publication Date: November 2019

Designed For
CPAs in private practice, CFO/controllers, financial managers, auditors, financial analysts, practitioners who provide accounting, tax or consulting services to businesses.

Topics Covered

  • Who Uses Financial Statement Analysis?
  • The "Five Step" Financial Statement Analysis Plan‐Basics
  • Accounting Basics
  • The Five Step Financial Statement Analysis Plan‐Expanded
  • Activity
  • Leverage
  • Operating Performance
  • Cash Flow
  • Personal Cash Flow (Business Owner/Guarantor)
  • Global Cash Flow
  • The Three Most Common Bank Loan Covenants
  • Other Cash Flow Analysis Models
  • Cash Basis Cash Flow
  • Real Estate Cash Flow (Commercial Building)
  • Other Issues in Financial Statement Analysis
  • How to Calculate a Z‐Score
  • Bankruptcy Predictor
  • Sustainable Growth Rates (SGR) from a Financial Perspective

Learning Objectives

  • Recognize how bankers analyze financial statements and make credit decisions
  • Recognize basic financial ratio analysis techniques
  • Identify various cash flow analyses, the Moody's Risk Analysts spreadsheet, and industry comparisons
  • Identify the Z-score (bankruptcy predictor) and sustainable growth models
  • Recognize how to calculate EBITA
  • Identify the "Five Step" Financial Statement Analysis Plan‐Basics

Level
Intermediate

Instructional Method
Self-Study

NASBA Field of Study
Finance (2 hours)

Program Prerequisites
Basic knowledge of Financial Statement Analysis.

Advance Preparation
None

Registration Options
Quantity
Fees
Regular Fee $55

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