This course is a “sequel” to the 101 course and is best taken after completion of that course, though it is not a prerequisite. The 201 course includes a case study and dives deeper into topics covered in modules 4, 6, and 8 of the 101 course: analyzing a borrower’s balance sheet, income statement, collateral, and risk ratings. What to Expect
Introduction and Overview Outline of course objectives and topics Understanding primary and secondary repayment sources Why banks need accurate loan data to estimate credit losses
Balance Sheet Analysis, Part 1: Analyzing Liquidity Better definitions of assets, liabilities, and equity Measuring liquidity: beyond formulas and ratios Quality of current assets
Balance Sheet Analysis, Part 1: Analyzing Leverage The difference between debt and equity How to measure leverage Highly leveraged lending
Income Statement Analysis, Part 1: Revenues and Profit Margins Analyzing revenues: growth and drivers Keys to analyzing gross margin and operating margin Why Return on Assets (ROA) matters
Income Statement Analysis, Part 2: Coverage Ratios Explanation of fixed charges EBITDA as a proxy for cash flow Measuring debt service coverage and fixed charge coverage
Collateral Analysis, Part 1: Non-current Assets Why bankers need a backup plan Commercial real estate as collateral How to evaluate fixed assets
Collateral Analysis, Part 2: Trading Asset Understanding self-liquidating collateral How to assess the value of inventory Analyzing a borrower’s Accounts Receivable
Collateral Analysis, Part 3: Solving the Problems Understanding Accounts Receivable Aging reports Borrowing base formulas and certificates Unsecured and under-secured loans
Risk Ratings, Expected Loss, and Provision for Credit Losses Assessing an obligor’s likelihood of repayment Dual risk ratings and expected loss Provision for Credit Losses and why it matters
Audience This course is most appropriate for credit analysts, lenders, portfolio managers, and others who need skills in financial statement analysis and writing credit documents.
Fee Per Person IBA Member $265 Nonmember $445