Series 3: Analyzing the Company’s Financial Performance and Financial Condition

Interpreting repayment risks suggested by the company's historical financial performance and financial condition.

Courses include:

    LDP 3.1 - Spreading Financial Statements
    LDP 3.2 - Analyzing the Balance Sheet
    LDP 3.3 - Analyzing the Income Statement
    LDP 3.4 - Analyzing Combined Balance Sheets and Income Statements

What You'll Learn

After completing this course, students will be able to:

  • Apply financial statement spreading techniques to reclassify accounts and provide details needed to prepare financial statements for credit analysis
  • Convert financial statements to a format that expresses accounts as percentages of total sales of or total assets
  • Compute a company's liquidity using various ratios
  • Analyze a company's ability to meet its short- term obligations
  • Determine how a company's industry sector influences it financial statement characteristics
  • Compute a company's leverage using various ratios
  • Analyze a company's ability to meet its long-term obligations
  • Determine how a company's industry sector influences it financial statement characteristics
  • Calculate and analyze a company's profit margins
  • Perform a trend analysis on a company's profitability
  • Compare a company's profitability with industry composites
  • Compute and analyze a company's productivity ratios
  • Compare a company's productivity trends with industry composites
  • Compute and analyze a company's efficiency ratios
  • Compare a company's efficiency trends with industry composites

​Audience

Loan trainees, credit analysts, and anyone with commercial lending authority.

Course Credits

ABA Professional Certifications: 14.5 CLBB


The Lending Decision Process and the courses in the curriculum are products of The Risk Management Association.


​Questions? Please contact training@aba.com for more information.

 

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