Understanding Quality of Earning Reports

On Demand Course

Instructor: Michele Avery

Duration: 1 HR

What You'll Learn

This course will provide you with an understanding of the process of conducting a quality of earnings engagement and how to conduct this analysis. You will learn how to identify add-backs to earnings, explain financial trends and walk EBITDA forward. You will learn how to use techniques, including trend analysis, common-size analysis, and benchmark analysis, to measure the quality of earnings.

Agenda

QOE Objectives

Establish Normalized EBITDA
Identify Non-Operating or Excess Assets
Establish Net Working Capital Target

Contents of QOE Reports

Cash Proof of Revenue
Quality of Earnings Analysis
Financial Statement Analysis
Working Capital Analysis

QOE Analysis

Identify Adjustments
EBITDA Bridge
Re-Casted Income Statement

Financial Statement Analysis

Common Size Analysis
Trend Analysis
Variance Analysis

Working Capital Analysis

Accounts Receivable Quality
Inventory / Payables
Establishing Working Capital PEG

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

About the Author:

Michele Avery

Michele Avery, CPA/ABV, CVA, MAFF • Partner at Carr, Riggs & Ingram, LLC • Practice is focused solely on business valuation, including transactions of business interests, litigation issues, and estate matters • Regular speaker on business valuation and business transactions for CLE and CPE for attorneys and accountants • Holds the American Institute of Certified Public Accountants’ Accredited in Business Valuation credential and the National Association of Certified Valuators and Analysts’ Certified Valuation Analyst credential • M.B.A. degree, Louisiana State University; B.A. degree, University of Wisconsin – Superior • Can be contacted at 504-585-4410 or mavery@cricpa.com

On-Demand Course