Analyzing Business Financial Statements and Tax Returns


An analysis of business financial statements and tax returns, including cash flow statements.

Learning Obj​​​​ectives

The courses included in Analyzing Business Financial Statements and Tax Returns 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

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

 Benefits of Self-Paced Training

 
  • Ultimate flexibility
  • Quizzes to support learning
  • Mobile format available
 

 Registration & Pricing

 

Individual Purchase:
ABA Member  • $150
Non-Member  • $200

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

 

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