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Analyzing Business Financial Statements and Tax Returns

This curriculum of six courses covers the analysis of business financial statements and tax returns, including cash flow statements.

What You'll Learn

Courses included (only available as a curriculum) and their objectives are listed below:

Income Statement Analysis

  • Explain the components of revenue and cost of goods sold
  • Describe operating expenses and net profit analysis

Balance Sheet Analysis

  • Identify balance sheet considerations
  • Describe the different types of assets—current, other, and noncurrent
  • Explain the components involved in a liability and equity analysis

Ratio Analysis

  • Describe the considerations a lender needs to take into account when using ratios to evaluate financial performance
  • Identify, calculate, and interpret liquidity, financial leverage, profitability, efficiency, and debt coverage ratios
  • Explain how to use industry data when performing a ratio analysis

Cash Flow Analysis

  • Identify cash flow statements and reports
  • Describe the two dominant types of cash flow reports—indirect and direct method
  • Explain the direct method for operating activities and the importance of pro forma and cash budgets

The UCA Model

  • Compare the formats of the banker-prepared UCA cash flow model and the accountant-prepared statement of cash flows (SCF)
  • Construct a UCA model and interpret the results
  • Explain the advantages of the UCA model

Cash Budgets and Pro Forma Statements

  • Provide a description of a cash budget
  • Explain the purpose of a cash budget
  • Describe why a cash budget is a critical tool of financial statement analysis
  • Identify key financial information in the cash budget format
  • Analyze the cash budget to determine the effect on the operating cycle, working capital, and capital expenditures

​Audience

Commercial and/or Business bankers and Credit Analysts

Course Credits

ABA Professional Certifications: 8.0 CLBB

ABA Certificates​: This course applies to the ABA Certificate in Business and Commercial Lending


​Questions? Please contact training@aba.com or 1-800-BANKERS for more information.
 

 Purchase

 

Purchase for a Team
To license this course to your bank for multiple learners, please contact ABA Training.​

 

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