The Income Statement - What a Banker Can Learn About a Borrower from Its Profit and Loss Statement

September 17, 2020 - CA US


Overview: 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 Why you should Attend: This program is designed to assist bankers, lenders and credit professionals who want a fundamental understanding of the information that is contained in the income statement. During this program, participants will learn the critical elements of the profit and loss statement and how to use it to assess the operating performance of a business borrower. Areas Covered in the Session: 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 A case study is used to demonstrate how to evaluate operating performance Who Will Benefit: Credit Analysts Credit Managers Loan review officers Work-out officers Commercial Lenders Credit Risk Managers Chief Credit Officers Senior Lenders Senior Lending Officer Bank Director Chief Executive Officer President Board Chairman Speaker Profile Dev Strischek A frequent speaker, instructor, advisor, and writer on credit risk and commercial banking topics and issues, Dev is principal of Devon Risk Advisory Group and engages in consulting, speaking and training on a wide range of risk, credit, and lending topics. As 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. He also spent three years as managing director and credit approver in SunTrust's Florida commercial lending and corporate investment banking areas, respectively. Prior to SunTrust, Dev was chief credit officer for Barnett Bank's Palm Beach market. Besides stints at other banks in Florida, Kansas City, and Ohio, Dev's experiences outside of banking include CFO of a Honolulu construction company, combat engineer officer in the U.S. Army, and college economics instructor in Hawaii, Missouri, and Florida. A graduate of Ohio State University and the ABA Stonier Graduate School of Banking, he earned his M.B.A. from the University of Hawaii.

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