Introduction to Analyzing Financial Statements

Reviews terms and steps associated with analyzing financial statements. Explains how tax returns report income and expenses from another perspective. Examines the computation and meaning of four categories of financial ratios and how ratios are used to spot significant trends.

Updated: June 2017
Re-versioned: July 2016

What You'll Learn

After successfully completing this course, you will be able to:

  • Define financial statement analysis and explain its importance in the small business lending process
  • List the basic steps of financial statement analysis and the purpose of each step
  • Analyze an income statement and balance sheet
  • Explain how tax returns are used in the lending process
  • Calculate and interpret key ratios
  • Perform a simple cash flow analysis


Bank personnel who are responsible for reviewing financial statements for the purpose of assisting in making lending decisions, monitoring the ongoing health of the business, or conducting the initial financial analysis.

Course Credits

ABA Professional Certifications​: 3.75 CLBB​, CSOP, CTFA​

ABA Certificates​: This course applies to the following certificates:

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


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