Analyzing financial statements means looking past a single ratio. If a company's current ratio is 2:1, what does that tell you, and should your credit decision rest on it? If grocery stores average 45:1 inventory turnover and yours is 9:1, is something wrong?
This 90-minute webinar shows how to work with the balance sheet, income statement and statement of cash flows, and the ratios built from them, to make sound credit decisions. You'll calculate activity, profitability, liquidity and debt ratios and the Altman Z score, review gross and net sales, cost of goods sold, gross margin and EBIT, and consider whether DSO is the best gauge of collection ability.
WHY SHOULD YOU ATTEND?
Ratios alone don't tell the whole story, so you need to know how the statements fit together and where to look for answers. The session also shows how to write an account summary that presents your credit decision to management.
It suits bankers, credit managers and analysts, FP&A staff, small business owners, general managers and attorneys.
AREA COVERED
- Financial analysis and reading the three main statements
- Gross and net sales
- Cost of goods sold
- Gross margin
- EBIT
- Activity, profitability, liquidity and debt ratios
- The Altman Z score
- DSO and collection ability
- The importance of cash
- Writing an account summary for management
LEARNING OBJECTIVES
- Tie the three main financial statements together to make a sound credit decision
- Interpret what each financial ratio is telling you
- Explain the importance of the Altman Z score
- Assess the importance of cash to the organization
- Judge whether DSO is the best measure of collection ability
- Write a summary that supports your credit decision for management
WHO WILL BENEFIT?
- Bankers.
- Credit managers.
- Credit Analysts.
- People working in FP&A.
- Small business owners.
- General Managers.
- Attorneys.
Ratios alone don't tell the whole story, so you need to know how the statements fit together and where to look for answers. The session also shows how to write an account summary that presents your credit decision to management.
It suits bankers, credit managers and analysts, FP&A staff, small business owners, general managers and attorneys.
- Financial analysis and reading the three main statements
- Gross and net sales
- Cost of goods sold
- Gross margin
- EBIT
- Activity, profitability, liquidity and debt ratios
- The Altman Z score
- DSO and collection ability
- The importance of cash
- Writing an account summary for management
- Tie the three main financial statements together to make a sound credit decision
- Interpret what each financial ratio is telling you
- Explain the importance of the Altman Z score
- Assess the importance of cash to the organization
- Judge whether DSO is the best measure of collection ability
- Write a summary that supports your credit decision for management
- Bankers.
- Credit managers.
- Credit Analysts.
- People working in FP&A.
- Small business owners.
- General Managers.
- Attorneys.