1. Analyzing Retail Business Financial Statements – Back to Basics

Analyzing Retail Business Financial Statements – Back to Basics

Analyzing Retail Business Financial Statements – Back to Basics
Event ID: 69736
Not for Sale
Recording: 12638

Duration: 90 minutes, including question and answer period.
Presenter(s): Gary Deutsch, CPA, president, BRT Publications, LLC
$299.00, On-Demand includes full audio presentation, question and answer session, and presentation slides. 
Credits: Live webinar approved for 1.5 NASBA credit hours (Management Services)
Who Should Attend? Loan officers, management, financial officers, credit officers, credit analysts, portfolio managers, credit review auditors, persons responsible for loan reviews

Local businesses, including local entrepreneurs operating online businesses, need to have a relationship with banks and credit unions. And despite the movement to online sales, local brick and mortar businesses continue to be important business drivers for financial institutions. Often the primary relationship is for deposit and cash services, but retailers also need inventory financing and working capital loans.

Although loans to retailers may be small and have smaller profit margins than other types of commercial loans, they also provide a valuable service to local businesses that support the community where the institution operates. So even if loans to retailers are an accommodation instead of a primary portfolio target, they are still important business that can reap rewards through community contacts. Who sees more people every day than retailers? That’s why institutions need to have at least one financial analyst trained in analyzing retailer financial statements.

Financial statement analysis of retailers requires knowledge of the many different types of retail businesses. Since financial institutions are often lending to locally owned retail businesses, this knowledge should be based on an understanding of both cash and accrual accounting concepts as related to various types of retailers as well as the income tax issues these retailers face.

Although financial statement analysts are not responsible for detecting financial statement fraud, privately owned retailers can understate income to avoid paying taxes. That’s why analysts need red flags to detect if a prospective borrower may be significantly understating its business net income.

During this webinar, our expert Gary Deutsch, CPA MBA, will provide current and new financial analysts with an understanding of the basic financial analysis skills needed to support the underwriting of loans to retail businesses.


This webinar will cover:

  • An overview of the financial analysis issues related to the retail industry such as controlling access to cash, obtaining sufficient supporting documentation, and reviewing a retailer’s books and records
  • Analyzing retailer income including cash transactions and indirect review methods when documentation is not available
  • Understanding cost of goods sold, operating expenses and fee and tax issues specific to the retail industry
  • Red flags to watch for during the analysis process
  • Retail business financial statement analysis examples:
    • Online retailers
    • Gasoline service stations
    • Auto body and repair industry
    • Restaurants and bars


Your conference leader for "Analyzing Retail Business Financial Statements – Back to Basics” is Gary Deutsch, president, BRT Publications LLC. Mr. Deutsch is a licensed CPA in Maryland and has a B.A. in accounting and an MBA in finance from Loyola University Maryland. He has also achieved the Certified Management Accountant, Certified Internal Auditor and Certified Bank Auditor designations. Mr. Deutsch is the founder and president of BRT Publications LLC.

Mr. Deutsch has trained thousands of financial institution professionals in all aspects of risk management and has written numerous books in the U.S. and Europe on topics such as credit risk, internal audit and compliance with Generally Accepted Accounting Principles. Mr. Deutsch has extensive risk management and internal audit experience through his association with financial institutions of all sizes as well as through his role leading the KPMG financial institution consulting practice in the Mid-Atlantic region.


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