Financial Statement Analysis: The Write-up

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Turn numbers into compelling narrative.

[gdl_icon type=”icon-circle” color=”#222″ size=”6px”] What are the sources of info for a good write-up?
[gdl_icon type=”icon-circle” color=”#222″ size=”6px”] How to evaluate borrower supplied information
[gdl_icon type=”icon-circle” color=”#222″ size=”6px”] The four steps to writing up a ratio or other indicator
[gdl_icon type=”icon-circle” color=”#222″ size=”6px”] The three-file approach to customizing your write-ups

[button color=”#ffffff” background=”#F28830″ size=”large” target=”_blank” src=”https://rd100.infusionsoft.com/app/orderForms/Financial-Statements-Write-Up”]$39.95 | Buy now[/button][/column]


Module length: 22 minutes. Plan on at least ten minutes longer for note-taking and exercises.


Recommended Prerequisites

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[tab_item title=”Financial Statement Analysis | Balance Sheet Basics”]

Yes, it should balance. What else?

[gdl_icon type=”icon-circle” color=”#222″ size=”6px”] Three characteristics of the Balance Sheet
[gdl_icon type=”icon-circle” color=”#222″ size=”6px”] The difference between personal and business
[gdl_icon type=”icon-circle” color=”#222″ size=”6px”] Three types of “value” and which the balance sheet shows
[gdl_icon type=”icon-circle” color=”#222″ size=”6px”] What do they mean by that term?)

Go to Financial Statement Analysis | Balance Sheet Basics Module[/tab_item]
[tab_item title=”Financial Statement Analysis | Income Statement Basics”]

Yes, it should balance. What else?

[gdl_icon type=”icon-circle” color=”#222″ size=”6px”] How the income statement and balance sheet fit together
[gdl_icon type=”icon-circle” color=”#222″ size=”6px”] Nuances of the income statement equation
[gdl_icon type=”icon-circle” color=”#222″ size=”6px”] Terminology. “Which gross is gross” and other questions.
[gdl_icon type=”icon-circle” color=”#222″ size=”6px”] Three ways a business can increase profits

Go to Income Statement Basics Module[/tab_item]
[tab_item title=”Financial Statement Analysis | Statement of Cash Flows Basics”]

My personal favorite of the three statements.

[gdl_icon type=”icon-circle” color=”#222″ size=”6px”] DIY when you have the income statement and balance sheet
[gdl_icon type=”icon-circle” color=”#222″ size=”6px”] Five sources of cash flow (and which we want to see)
[gdl_icon type=”icon-circle” color=”#222″ size=”6px”] If they are making money, where is it going?
[gdl_icon type=”icon-circle” color=”#222″ size=”6px”] If they are losing money, how are they covering the shortfall?

Go to Financial Statement Analysis | Statement of Cash Flows Basics[/tab_item]
[tab_item title=”Financial Statement Analysis | Terminology”]

Financial Statements are a foreign language.

[gdl_icon type=”icon-circle” color=”#222″ size=”6px”] Covers 26 terms found in the three statements
[gdl_icon type=”icon-circle” color=”#222″ size=”6px”] Look up terms by type of statement or name
[gdl_icon type=”icon-circle” color=”#222″ size=”6px”] Clear explanations of confusing terms
[gdl_icon type=”icon-circle” color=”#222″ size=”6px”] Examples of each

Go to Financial Statement Analysis | Terminology Module[/tab_item]
[tab_item title=”Intermediate Financial Statements | Intro to Analysis”]

Before you get started analyzing financial statements:.

[gdl_icon type=”icon-circle” color=”#222″ size=”6px”] What is comparative analysis
[gdl_icon type=”icon-circle” color=”#222″ size=”6px”] Which ratios and percentages are relevant
[gdl_icon type=”icon-circle” color=”#222″ size=”6px”] Three questions to answer before you start
[gdl_icon type=”icon-circle” color=”#222″ size=”6px”] Two questions to answer after analysis

Go to Intermediate Financial Statements | Intro to Analysis Module[/tab_item]
[tab_item title=”Intermediate Financial Statements | Liquidity”]

Liquidity is the fuel and the back-up plan.

[gdl_icon type=”icon-circle” color=”#222″ size=”6px”] Working capital, current ratio and quick ratio
[gdl_icon type=”icon-circle” color=”#222″ size=”6px”] Trends and comparisons
[gdl_icon type=”icon-circle” color=”#222″ size=”6px”] How can a company be too liquid?
[gdl_icon type=”icon-circle” color=”#222″ size=”6px”] The two most important questions

Go to Intermediate Financial Statements | Liquidity Module[/tab_item]
[tab_item title=”Intermediate Financial Statements | Operating Cycles and Turnovers “]

Focus on what management is doing to improve profits..

[gdl_icon type=”icon-circle” color=”#222″ size=”6px”] Calculate turnover and days for inventory and receivables
[gdl_icon type=”icon-circle” color=”#222″ size=”6px”] The impact of obsolete inventory and bad debts
[gdl_icon type=”icon-circle” color=”#222″ size=”6px”] Why using year-end figures can be misleading
[gdl_icon type=”icon-circle” color=”#222″ size=”6px”] What factors cause the business to be off industry averages

Go to Intermediate Financial Statements | Operating Cycles and Turnovers Module[/tab_item]
[tab_item title=”Intermediate Financial Statements | Leverage”]

The fundamental issue in lending.

[gdl_icon type=”icon-circle” color=”#222″ size=”6px”] Space exploration, pouring beer and multiplying profits
[gdl_icon type=”icon-circle” color=”#222″ size=”6px”] The “Skin in the Game” factor
[gdl_icon type=”icon-circle” color=”#222″ size=”6px”] Debt to Equity and Debt Coverage Ratios
[gdl_icon type=”icon-circle” color=”#222″ size=”6px”] A back-door calculation to determine debt capacity

Go to Intermediate Financial Statements | Leverage Module[/tab_item]
[tab_item title=”Financial Statement Analysis | The Loan Proposal”]

A sales job, sure. And more.

[gdl_icon type=”icon-circle” color=”#222″ size=”6px”] What should a loan proposal include?
[gdl_icon type=”icon-circle” color=”#222″ size=”6px”] Sizzle or facts, what is appropriate?
[gdl_icon type=”icon-circle” color=”#222″ size=”6px”] What clues does it give to how they run their business?
[gdl_icon type=”icon-circle” color=”#222″ size=”6px”] Why and how should you keep your “skeptic hat” on?

Go to Financial Statement Analysis | The Loan Proposal Module[/tab_item]

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