Event Calendar

Start Date: 7/25/2024 9:00 AM MDT
End Date: 7/25/2024 10:30 AM MDT

This session will explore the five vital financial factors all lenders must understand to determine a borrower’s overall financial condition: liquidity, leverage, asset management, operating performance, and cash flow. Liquidity measures the ability to meet short-term obligations as they become due. Leverage measures the degree to which a company’s assets are supported by creditors compared to support provided by owners. Asset management measures management’s ability to utilize capital assets to generate revenue. Operating performance measures management’s ability to generate profits from operating their companies. Cash flow measures management’s ability to generate cash from operating, investing, and financing activities.
 
This session will define each factor and explain why it is important in the credit analysis process. Methods to determine each factor will be explored including the use of financial statements, ratio analysis, reconciliation procedures, working capital analysis, and best practices in determining true cash flow.