Financial Ratio Analysis Process – Back to Basics

$299.00
Event ID:18416

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

 

A thorough understanding of financial statements is a fundamental tool in credit analysis. Although credit analysts should have a basic sense of how to read financial statements, it is important to apply analysis tools to the data to gain a better understanding of a borrower’s financial position and performance. Financial ratios can significantly improve an analyst’s ability to see an applicant’s total financial picture.

Bankers use a large variety of tools in the credit analysis process. Although most ratios can be important tools for the analysis of some credits, it is unusual to use all ratios in the analysis of each applicant. Analysts must learn to focus on only those ratios that highlight the specific areas of importance for your applicant.

The ratios discussed in this webinar are grouped into categories, based on what they are used to analyze:

  • Liquidity
  • Leverage/coverage
  • Performance/profitability
  • Efficiency
  • Other analysis tools

 

It is critical for credit analysts to understand that there is no single ratio that unambiguously tells the user whether a loan request is good or bad. In fact, there is not even any combination of ratios that can reliably identify good or bad risks. This does not mean, however, that financial ratio analysis is a waste of time. For users who understand the limitations of ratios, well-selected ratios can provide valuable insights. Appropriately used, financial ratio analysis is a sensitive and insightful credit evaluation tool.

Please join us for this important webinar, in which Gary Deutsch, CPA MBA, will discuss the essential components of the financial ratio analysis process to benefit both new and seasoned analysts.

WHAT YOU’LL LEARN

The discussion of the financial ratio analysis process will cover the following topics:

  • Considerations in using financial ratios
  • Keeping ratio analysis in perspective
  • Liquidity ratios including primary, secondary and liquidity trends
  • Leverage/coverage ratios including primary, secondary, likelihood of bankruptcy, and leverage and debt coverage trends
  • Performance ratios including primary, secondary, and profitability trends
  • Efficiency ratios including primary, secondary, and efficiency/activity trends
  • Other analysis tools including cash flow ratios and ratios for analyzing individuals
  • AND MUCH MORE!
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    YOUR CONFERENCE LEADER

    Your conference leader for “Financial Ratio Analysis Process – 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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