This course introduces a basic approach towards analyzing a company's financial statements. Topics include analyzing the income statement and statement of cash flow to evaluate debt service capacity as well as analyzing the balance sheet to identify a secondary source of repayment and to assess the company's staying power.

Objectives

The objective of the course is to provide individuals with little or no experience a basic framework that can be used to analyze a company's income statement, statement of cash flows and balance sheet. By the end of the course, the participant will be able to:

• Evaluate a company's core earnings and cash flow
• Determine whether a satisfactory secondary source of repayment exists
• Evaluate the staying power provided by the balance sheet using various techniques include liquidity, turnover and leverage ratios.
• Decide whether to approve or turn down a basic loan request

This course is targeted toward entry-level lenders or financial analysts with minimal formal training who wish to develop a consistent approach to making a credit decision or recommendation.