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Utilizing Financial Ratios to Determine Financial Strength

Credit Ration Analysis is one of the most important functions performed by banks. Since interest and fee income from the Loan Decisioning Process represent the largest source of revenue for banks, it is vital that thorough credit ratio analysis be performed before loans are approved and funded to determine the actual financial condition of Commercial Borrowers.
OnDemand
DATE

Recorded Monday,
August 17, 2026

INSTRUCTOR

Jeffery Johnson

DURATION

2 Hours

FORMAT

Webinar

$299.00 or 1 Token

Includes: 30 Days OnDemand Playback, Presenter Materials and Handouts

  • Lending
  • Lending Compliance
  • Board Member
  • Branch Manager
  • Commercial Lender
  • Compliance Officer
  • Consumer Lender/Retail Banker
  • Controller/Accountant
  • Credit Analyst
  • Internal Auditor
  • Loan Closer
  • Private Banker
  • Risk Manager
  • Senior Management
  • Small Business Lender
  • Training Manager
  • Trainer

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The Credit Analysis process starts with spreading historical financial statements either manually or utilizing AI; then, allowing the financial analysis system to calculate key ratios to determine the financial health of an organization. After a thorough review of the financial statements, the true financial condition of an economic entity will not be revealed until Credit Ratio Analysis is performed.

Credit Ratio Analysis will reveal the five most vital financial factors all commercial borrowers face. If these factors are determined, you will have uncovered most if not all of the financial challenges any company will face, including their: Liquidity, Leverage Position, Asset Management Capabilities, Operating Performance and their ability to generate Cash Flow. The purpose of this course is to expose the participant to the five vital signs of any organization and the required ratios to identify them.

What You'll Learn

After completing this course, the participant will be able to Identify and Interpret the Five Vital Financial Factors affecting each Commercial Borrower and the Credit Metrics to determine the trend and meaning of each Factor. The course will address how to determine the trends of the Five Vital Financial Factors and how to utilize this information to perform more detailed analysis. The following specific areas will be covered:

  • Liquidity

Current / Quick Ratios

Working Capital Analysis

Defensive Interval Ratio

Activity Ratios for Working Capital Assets

Activity Ratios for Working Capital Liabilities

  • Leverage

Ratios to Measure the Proportion of Support Provided by Owners and Creditors

  • Asset Management

To Measure the Ability of Management to Utilize Their Assets to Generate Sales and Profits

  • Operating Performance

Performance Ratios to Measure the Relationship Between Sales, Costs and Expenses and How their changes can affect the profitability

  • Cash Flow

Modified Uniform Cash Analysis to Convert Accrual Profits into Cash and to Determine the Primary and Sources and Uses of Cash to Service Debts and Support Ongoing Operations

Who Should Attend

Credit Analyst, Commercial Lenders, Consumer Lenders, Senior Credit and Loan Officers, Loan Review Officers, Auditors, Directors and Branch Managers.
Jeffery Johnson

Instructor Bio

Jeffery W. Johnson started his career with SunTrust Bank in Atlanta as a Management Trainee and progressed to Vice President and Senior Lender of SouthTrust Bank and Senior Vice President and Commercial Banking Division Manager for Citizens Trust Bank of Atlanta.

Most of his career has been spent in Credit Administration, Lending, Business Development, Loan Review, Management and Training & Development. He has managed loan portfolios representing a cross section of loan types including: Large Corporate, High Net Worth Individual, Middle Market Companies, Small Business, Real Estate and Non-Profit Organizations.

Mr. Johnson is now a training professional in the financial industry by leading various seminars covering important topics relating to issues in financial institutions. He teaches actively for fifteen state banking associations in the United States, Risk Management Association (RMA) and individual financial institutions nationwide. He co-authored a training course entitled "Lending to Service and Other Professional Organizations" for RMA in 2001.

Mr. Johnson earned a B.A. Degree in Accounting from Morehouse College in Atlanta; a MBA in Finance from John Carroll University in University Heights, Ohio; Banking diploma from Prochnow School of Banking at the University of Wisconsin and a Graduate Certificate in Bank Management from the Wharton School of Business at the University of Pennsylvania.

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