GSB – Developing and Analyzing Key Financial Ratios

This program covers how to calculate and analyze the basic set of financial statement (or tax return) ratios for operating businesses. Preliminary steps (covered in related programs) include understanding the types of financial statements and level of accountant involvement, distinguishing between cash and accrual accounting methods, and the unique format and features of business tax returns. We now turn to the four primary sets of ratios: (1) liquidity, (2) leverage, (3) profitability, (4) efficiency, and (5) debt coverage. Using a comprehensive case, calculations are demonstrated, as wells as major issues, strengths and limitations of the various ratios. Participants will work from a ratios reference guide that is intended to be a resource for future statement spreading.

Covered Topics

Basic guidelines for classifying and spreading the data
Identify the key components of a balance sheet
Calculate liquidity and leverage ratios for an example business and interpret the results
Identify situations with positive or negative working capital
Describe common-sizing of the balance sheet
Identify the key components of an income statement
Calculate profitability and traditional cash flow measures for an example business and interpret the results
Calculate efficiency and debt coverage ratios for an example business and interpret the results
Explain the use of industry and comparative data within financial analysis

Target Audience
Credit analysts, portfolio managers, assistant relationship managers, community bankers, small business lenders, commercial lenders, consumer lenders, branch managers that lend to business owners, private bankers, special assets officers, loan review specialists and others involved in business and commercial lending

Richard Hamm, Advantage Consulting & Training

Registration Option

Live presentation $275

Recording available through Mar. 14, 2022


Dec 14 2021


8:30 am - 10:00 am



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