A thorough understanding of financial reports is fundamental to corporate credit analysis. The balance sheet is one of the four major financial statements in an annual financial report. It describes the financial condition or position of an organization at a particular point in time.
The balance sheet is a statement of an entity’s resources, financial obligations, and ownership interest. It is always “as of” or “at” some date, a snapshot of where the organization stands on the last day of the period being measured. Primary categories on the balance sheet include:
- Current assets
- Property, equipment, and other assets
- Current and long-term liabilities
- Owner’s equity
What do balance sheets measure? They primarily measure liquidity and leverage, providing answers to these questions:
- How capable is an organization of covering its obligations to creditors?
- How is the organization financed?
- To what degree does a company use creditor money (liability) and to what degree does it use its own money (equity) to finance the business?
Please join Gary Deutsch, CPA MBA, as he discusses how credit analysts can use a prospective borrower’s balance sheet to assess loan risk and assist with the lending decision-making process. This material can be helpful to new credit analysts as well as a refresher for more experienced analysts.
WHAT YOU’LL LEARN
In this informative webinar, we will cover:
Balance Sheet Basics
- Current Assets
- Cash and Equivalents
- Marketable Securities
- Accounts Receivable
- Spreading Inventory
- Other Current Assets
Property, Plant and Equipment and Other Assets
- Property, Plant and Equipment
- Leasing Long-term Assets
- Valuation Issues
- Other Assets
- Market vs. Book Value
Liabilities in General
- Current Liabilities
- Notes Payable/Short-term Debt/Lines of Credit
- Notes Payable — Trade
- Accounts Payable — Trade
- Other Current Liabilities
- Long-term Liabilities
- Long-term Debt
- Deferred Expenses — Deferred Income Taxes
- Deferred Expenses — Deferred Income
- Contributed and Earned Equity
- Common Stock
- Preferred Stock
- Paid-in Capital
- Treasury Stock
- Earned Equity — Retained Earnings
- Business Valuation in General
- Methods for Business Valuation — Asset-Based Approaches
- Methods for Business Valuation — Comparative Approaches
- Methods for Business Valuation — Earnings or Cash Flow Approaches
- Methods for Business Valuation — Market Approaches
- Methods for Business Valuation — Other Approaches and Considerations
- Additional Issues in Business Valuation
- Business Valuation Data Sources
- AND MUCH MORE!
YOUR CONFERENCE LEADER
Your conference leader for "The Balance Sheet – 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.