Thursday, December 17, 2020
12:00 – 1:00 pm (Eastern Time)
11:00 – 12:00 pm (Central Time)
10:00 – 11:00 am (Mountain Time)
9:00 – 10:00 am (Pacific Time)
This program is designed to show bankers, lenders and credit professionals:
- How to evaluate a borrower’s operating performance—revenue generation, productivity, efficiency, and profitability--as they analyze the information disclosed in its income statement.
- How to identify the critical elements of the profit and loss statement and their roles in driving a business borrower’s operating performance.
- How to judge a borrower’s operating performance trends and results against industry averages
- P&L’s key components—revenue, cost of goods sold, gross profit, operating expenses, profit before taxes, taxes, profit after taxes
- Revenue growth—actual sales growth vs sustainable growth rate
- Break-even analysis—how much revenue does a borrower need just to cover its expenses?
- Operating leverage—the smaller the gross profit, the more vulnerable a borrower’s profitability is to declining revenues
- Production vs. productivity
- Profit margins—gross profit margin, before-tax profit margin, after-tax profit margin
- Analysis of return on sales, return on assets, return on equity
- Profit vs cash flow—why profit is not always equal to cash flow
BONUS MATERIAL: A case study is used to demonstrate how to evaluate operating performance.
Check out and register for the companion webinar (Dec 17, 2pm ET): Financial Condition – Liquidity, Leverage and Solvency
A frequent speaker, instructor, advisor and writer on credit risk and commercial banking topics and issues, Martin J. "Dev" Strischek is principal of Devon Risk Advisory Group based near Atlanta, Georgia. Dev advises, trains, and develops for financial organizations risk management solutions and recommendations on a range of issues and topics, e.g., credit risk management, credit culture, credit policy, credit and lending training, etc. Dev is the former SVP and senior credit policy officer at SunTrust Bank, Atlanta. He was responsible for developing, implementing, and administering credit policies for SunTrust’s wholesale lines of business--commercial, commercial real estate, corporate investment banking, capital markets, business banking and private wealth management. Prior to SunTrust, Mr. Strischek was chief credit officer for Barnett Bank’s Palm Beach market. Dev is also a member of the Financial Accounting Standards Board’s (FASB’s) Private Company Council (PCC).
1.0 CPE Credits & 1.2 AAP Credits