On Demand Course

Understanding Quality of Earning Reports

Gain a better understanding of what a quality of earnings report means and who needs one.

Learning Objectives

After completing this course, learners will be able to:

  • Differentiate between a quality of earnings report and a due diligence report based on their scope, focus, and purpose in financial analysis.
  • Identify the primary focus of financial due diligence as the process of validating reported figures and uncovering financial risks.
  • Recognize the central purpose and components of a quality of earnings report used to evaluate financial reliability and operational performance.
  • Identify financial metrics and strategic reasons for conducting a quality of earnings report in preparation for a business transaction.
Michele Avery 1 HR
Included with Team Membership

About This Course

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. 

Your Instructor

Michele Avery
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

Training your team?

This course is covered under team memberships.

See Team Memberships
Buying for yourself?
$ 99
Included with Team Membership
Training your team?

This course is covered under team memberships.

See Team Memberships
$ 99
per attendee