Deep Dive into Financial Ratios
Ron has over thirty years in credit management in the clothing, door and window manufacturing, wine, the medical device industry, and now direct mailing. He holds a BS in Accounting and has received his certification in credit and finance from the Amos Tuck business school at Dartmouth University. Ron has been an instructor for NACM for 21 years teaching both the CAP and ACAP classes helping over 150 credit people prepare for their credit designations. Ron is currently the Director of Credit and payment solutions at Mspark Inc.
Ron
has been honored with the following awards for his efforts in giving
back to the credit community; NACM National instructor of the year 2010,
Credit Executive of Upstate NY in 2011, and the NACM CCE award of
Excellence in 2013. He has a passion for his profession and is
continually looking to share his knowledge so others can grow theirs.
During many years of evaluating companies there are many things that you find are not as they seem after breaking down a balance sheet, income statement or statement of cash flows. If you do not have the skills to properly analyze the companies’ financial statements, you could end up losing a large customer to bankruptcy or granting a loan and the company defaults on it. In the webinar you will learn how read a balance sheet, see what ratios you need to calculate in reviewing your balance sheet, income statement and statement of cash flows. You will learn about the Altman Z score which will let you know if a company is likely filing for bankruptcy in the next twelve months or not. Once calculating the ratios, you will also need to know what the numbers mean. If a company has a current ratio of 2:1 is that good, is having your DPO be 40 days and DSO be 50 days a good thing for a company. You will learn why having a strong cash flow is just as important as having strong earnings. A company can show earning and an increase in sales for three consecutive years, however, they can still go out of business if they cannot generate cash.
Areas Covered
- How to start the process of analyzing financial statements
- What to look for when breaking down the balance sheet
- What to look for when breaking down the Income statement
- How to read a statement of cash flows and what does it tell you
- Learn out the following ratios: Profitability, Activity, Earnings, Turnover and Leverage
- Learn and understand how to use the Altman Z score
- How to prepare an analysis and present it to management for getting a customer approved for open account or determining what their credit line should be
Who Should Attend
- Bankers
- Investment People
- Controllers
- Anyone in the Credit field using Financial Statements
Why Should You Attend
If you are making decisions for your organization using financial statements whether you are; working for bank approving loans, investing looking to purchase companies or Credit professionals who need to review their largest 50 accounts to make sure that who they are selling to is credit worthy you need to attend this webinar.
Understanding the ratios will help you determine things like: Is the company generating enough cash through their operations or will they need to borrow to pay their debt. What is the company DSO – (Average days to pay) and DPO (average days to pay) hopefully they are collecting cash faster then they are paying it out. Is the company actually making quality earnings or did they just raise their prices to cover the expenses that they did not keep under control? Is this company going to be filing for bankruptcy within the next twelve months? All these questions can be answered by performing ratios.
Topic Background
Looking at a balance sheet, income statement or statement of cash flows will help you make some good observations of how a company is performing. However, to really see behind the scenes you need to take the time to analyze each of these statements and calculate the ratios found within the statements. Just seeing a credit report and seeing that a company has increased sales the past few years and made a profit is not enough to make a sound decision about a company. This webinar will show you why and what you need to do to get a complete understanding of why financial ratios are important.
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$200.00
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