Ratio Analysis to Determine Financial Strength (MLC440X)

Insights on Ratio Analysis to Determine Financial Strength

Do you know which financial ratios enable you to judge the health of the company/department?

Join Roy Johnson in this audio session to know about the five vital signs of any organization and the required ratios to identify them. Credit (Risk) Analysis is one of the most important functions performed by banks. Since interest and fee income from loans represent the largest source of revenue for banks, it is vital that thorough credit analysis be performed before loans are approved and funded.

After attending this session, the participant will have a deeper understanding of ratio and credit analysis during the underwriting process. This should translate into well organized and clearly written credit memoranda where the participant will be more confident in explaining trends and the financial impact on customers and prospects

Topics covered in the session:

• Liquidity
  • Current / Quick Ratios
  • Working Capital Analysis

• 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 maximize profits
• Operations
  • Performance ratios to measure the relationship between sales, costs and expenses and how their changes affect the bottom line
• Cash Flow
  • Uniform cash analysis to determine the sources and uses of a firm’s cash as a means of serving long-term debt

Who should attend

Beginner Professionals in the Banking, Credit and Financial Services Industry followed by Mid Management and Upper Management.