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

Dev Strischek
Instructor:
Dev Strischek
Date:
Wednesday, May 5, 2021
Time:
10:00 AM PDT | 01:00 PM EDT
Duration:
60 Minutes

More Trainings by this Expert   Product Id : 503751

Price Details
$150 Live
$290 Corporate Live
$190 Recorded
$390 Corporate Recorded
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Live + Recorded
$289 $340 Live + Recorded
Corporate (Live + Recorded)
$599 $680 Corporate
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Overview:

This topic will explore all aspects of an income statement and Loss Statement and how the information that a profit and loss statement contains about a borrower's operating performance can assist in making credit decisions.

In particular, attention will be paid to those items that constitute cashflow in a profit and loss statement since those items determine repayment ability. The ways in which owners of businesses are compensated will also be examined as salaries are just one method of compensation.

Ratios will also be used to determine the sales trends, profit margins, and efficiency that a businesses experiences and ways in which those can be affected.

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
  • 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-how to convert profit into cash flow
  • Case Study

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.

Dev serves as an instructor in the ABA’s Stonier Graduate School of Banking, the Southwestern Graduate School of Banking, the Pacific Coast Banking School, and the American Bankers Association's (ABA) Commercial Lending. His school, conference, and workshop audiences have included participants drawn from the ABA, RMA, OCC, Federal Reserve, FDIC, FFIEC, SBA, the Institute of Management Accountants (IMA) and the AICPA.

Dev has written about credit risk management, financial analysis and related subjects for the ABA's Commercial Insights, the Risk Management Association's RMA Journal, and other business professional journals. He is the author of Analyzing Construction Contractors and its related RMA workshop. A past national chair of RMA and former Florida Chapter president, Dev serves as a member of the RMA Journal's advisory board, and an ex-officio board member of the Florida and Atlanta RMA chapters. He also serves on the advisory board of the Atlanta Chapter of the Professional Risk Managers' International Association (PRMIA), and he has consulted on credit risk issues with banks in Morocco, Egypt, and Angola through the US State Department's Financial Service Volunteer Corps (FSVC)


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