The principal goal of this course is to enable you to define and analyze key balance sheet and income statement ratios connected to liquidity, leverage, profitability, asset management, and coverage.
Topics Will Include:
- Calculate and analyze liquidity and leverage ratios
- Calculate and analyze key profitability measures including the gross profit margin, operating profit margin, and net profit margin.
- Calculate profit to payment obligations by calculating debt coverage ratios.
- Calculate and analyze account receivable turnover and days on hand.
- Calculate and analyze inventory turnover and days on hand
- Calculate and analyze account payable turnover and days on hand
- Calculate and analyze key asset management ratios
- Explore borrowing needs caused by changes in the cash cycle
- Examine the components of working capital.
- Use enhanced techniques to further understand changes in liquidity, leverage, profitability, and asset management.
- Explore the relationship of sales and sustainable growth
- Use Dupont analysis to enhance understanding of ROE.
Who Should Attend?
Commercial lenders, credit analysts, small business lenders, middle market lenders, private bankers; loan review specialists, special assets officers, lending managers and credit officers.
Instructor
Tom Carlin
An authority on financial and credit risk, Mr. Carlin is a Managing Partner at Eensight. He has worked with major banks, insurance companies and regulatory agencies over the last twenty years, designing and teaching financial topics including: basic, intermediate and advanced credit and financial statement analysis, business lending for branch bankers, accounting for bankers, basic intermediate and advanced cash flow analysis, loan structuring, consumer lending and trade finance.
His audiences include business bankers, recent graduates going through the organizations basic credit training program, senior management personnel that need to know the basics of accounting and financial statement analysis, middle market lenders with many years of experience and regulatory agency personnel.
Each program he designs and teaches is tailored to the individual customer with the products, procedures and culture of the organization incorporated into the course design. The complexity and intensity of the programs are adjusted to reflect the needs of the participants and the logistical training issues faced by the organization.
He is the author of “Financial Statement Analysis” published by the American Bankers Association in 1994. He is also the author of “Consumer Lending”, published by The Center for Financial Training in 2015.
He has designed and taught programs in risk analysis for Citibank, Wells Fargo, American International Group, Capital One, Chase Manhattan Bank, First Tennessee, M & T, Union Bank, and The Bank of China. He has also taught the “Credit Risk Analysis Program” at the Federal Reserve Bank.
Prior to Eensight, Mr. Carlin was a Regional Director for Omega Performance Corporation. He was also a Vice President with Bankers Trust in New York. He was responsible for marketing credit and trade finance products to corporate clients and correspondent banks worldwide.
Mr. Carlin has a Masters of International Management degree from The Thunderbird School of Global Management and a Bachelor of Arts Degree from Villanova University.