Credit (Risk) Analysis is one of the most important functions performed by financial institutions. Since interest and fee income from loans represent the largest source of revenue for financial institutions, it is vital that thorough credit analysis be performed before loans are approved and funded.
The Credit Analysis process starts with spreading historical financial statements and then calculating key ratios to determine the financial health of an organization. The purpose of this course is to expose the participant to the five vital signs of any organization and the required ratios to identify them. A detailed identification and definition of ratios will be covered.
Current / Quick Ratios
Working Capital Analysis
Defensive Interval Ratio
Activity Ratios for Working Capital Assets
Activity Ratios for Working Capital Liabilities
Ratios to Measure the Proportion of Support Provided by Owners and Creditors
3. Asset Management
To Measure the Ability of Management to Utilize Their Assets to Generate Sales and Profits
Performance Ratios to Measure the Relationship Between Sales, Costs and Expenses and How Their Changes Affect the Bottom Line
5. Cash Flow
Uniform Cash Analysis to Determine the Sources and Uses of a Firm’s Cash as a Means of Serving Long-Term Debt
You’ll leave with a deeper understanding of ratio and credit analyses during the underwriting process. This translates into well-organized, clearly written credit memoranda so you’ll be more confident explaining trends and the financial impact on customers and prospects.
Who Should Attend?
- Credit Analysts
- Commercial Lenders
- Consumer Lenders
- Senior Credit and Loan Officers
- Loan Review Officers
- Branch Managers
Continuing Education (CE) Credits
This webinar is recommended for 2.5 CE Credit Hours. Each attendee will receive a Certificate of Attendance for self-reporting of CE Credits.View Delivery Options
Jeffery W. Johnson started his career with SunTrust Bank in Atlanta as a Management Trainee and progressed to Vice President and Senior Lender of SouthTrust Bank and Senior Vice President and Commerci... read more.