Oregon Bankers Association - Independent Community Banks of Oregon

Analyzing Financial Statements

AIB Course Code: 6920

Course Length: 16 weeks

Course Description:
Analyzing Financial Statements is a practical introduction to financial analysis from the viewpoint of the commercial loan officer. This program gives you the skills you need to effectively assess the borrower's ability to repay loans.

Audience:
Commercial loan officers, credit analysts, and trainees who have a basic knowledge of accounting principles and practices, and a familiarity with the commercial lending process.

Learning Objectives:
After successfully completing this program, you will be able to:

Relate how a company's type of business, legal structure, size, and management strategies affect the way a lender conducts financial analysis
Analyze income statements, balance sheets, and pro forma statements
Calculate key financial ratios and use them to compare a company's performance with that of the company's industry
Use advanced analytical techniques: sensitivity analysis, sustainable growth, working investment analysis, break-even analysis, and operating leverage
Determine when a funds flow statement is required
Construct and analyze long-run, multiple-year forecasts of income statements and balance sheets
Construct and interpret a cash budget

Textbook:
Analyzing Financial Statements, 7th edition, American Bankers Association, 2007

Course Credits: AIB: 3.0

ACE College Credit Recommendation:
In the lower division baccalaureate/associate degree category, 3 semester hours in Finance or Accounting

Prerequisites:
General Accounting or Financial Accounting

Required Software: None