Ratio Analysis

The principal goal of this course is to enable you to define and analyze key balance sheet and income statement ratios connected to liquidity, leverage, profitability, asset management, and coverage.

Covered Topics

  • Calculate and analyze liquidity and leverage ratios
  • Calculate and analyze key profitability measures including the gross profit margin, operating profit margin, and net profit margin.
  • Calculate profit to payment obligations by calculating debt coverage ratios.
  • Calculate and analyze account receivable turnover and days on hand.
  • Calculate and analyze inventory turnover and days on hand
  • Calculate and analyze account payable turnover and days on hand
  • Calculate and analyze key asset management ratios
  • Explore borrowing needs caused by changes in the cash cycle
  • Examine the components of working capital.
  • Use enhanced techniques to further understand changes in liquidity, leverage, profitability, and asset management.
  • Explore the relationship of sales and sustainable growth
  • Use Dupont analysis to enhance understanding of ROE.

Who Should Attend?

Commercial lenders, credit analysts, small business lenders, middle market lenders, private bankers; loan review specialists, special assets officers, lending managers and credit officers.