Interpreting Financial Statement Spreads

This webinar answers the question: “I have these financial statement spreads, now what?”.  It is designed to arm credit and lenders with the basic skills they need to interpret and analyze spreads. The webinar helps to add context – delving into the “how” and “why”, not just the “what”.

Topics covered in this session

Introduction and General Info

• Spreading software and results
• Trend analysis
• Industry averages
• Financial statement types and quality

Overview of Reports

• Balance sheet - $ and %
• Income statement - $ and %
• UCA cash flow
• Ratios

Balance sheet

• Working capital
• CPLTD
• Trading accounts
• Net worth
• Intangibles
• Subordinated debt
• Fluctuations in various line items
• “Other” items

Income statement

• Sales and margins over time
• Depreciation expense
• Rent expense
• Officer salaries
• Distributions/withdrawals
• Fluctuations in various line items
• “Other” items

UCA cash flow

• Difference versus traditional cash flow (DSCR)
• Cash inflows and outflows
• Trading accounts as sources & uses of cash
• CADA
• Financing Surplus (Requirements)
• External Financing
• Capital Expenditures
• Days on Hand (efficiency) versus sales trends

Ratios

• Liquidity
• Leverage
• Profit Margins
• Trading Account Turnover
• Sustainable Growth Rate

Summary, Conclusion, and Best Practices

Who Should Attend:

• New credit analysts
• Lenders
• Loan reviewers
• Regulators

*This program does NOT qualify, nor meet the National Standard for NASBA accreditation.