Evaluating a Borrower’s Operating Performance
October 6 2020 16:00 - 17:00 UTC
This webinar will show bankers, lenders and credit professionals how to:
- Evaluate a borrower’s operating performance—revenue generation, productivity, efficiency, and profitability--as they analyze the information disclosed in its income statement.
- Identify the critical elements of the profit and loss statement and their roles in driving a business borrower’s operating performance.
- Judge a borrower’s operating performance trends and results compared to industry averages
Specific topics covered include:
- P&L’s key components—revenue, cost of goods sold, gross profit, operating expenses, profit before taxes, taxes, profit after taxes
- Revenue growth—actual sales growth vs sustainable growth rate
- Break-even analysis—how much revenue does a borrower need just to cover its expenses?
- Operating leverage—the smaller the gross profit, the more vulnerable a borrower’s profitability is to declining revenues
- Production vs. productivity
- Profit margins—gross profit margin, before-tax profit margin, after-tax profit margin
- Analysis of return on sales, return on assets, return on equity
- Profit vs cash flow—why profit is not always equal to cash flow
A case study is used to demonstrate how to evaluate operating performance throughout the webinar.
• Prerequisites: N/A • Advanced Preparations: N/A
• Course Level: Basic • Group Internet Based Training
CBANC Network is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.NASBARegistry.org.
- Financial Analysis
Operating Performance.pdfAttendees Only
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