Financial Statement Analysis

1. Introduction
2. Author/Lecturer 00:01:59
3. Who Uses Financial Statement Analysis? 00:03:26
4. The “Five Step” Financial Statement Analysis Plan - Basics  00:5:50
5. Accounting Basics 00:08:08
6. The Five-Step Financial Statement Analysis Plan - Expanded - Liquidity 00:08:57
7. The Five-Step Financial Statement Analysis Plan - Expanded -Activity 00:15:52
8. The Five-Step Financial Statement Analysis Plan - Expanded -Leverage 00:20:24
9. The Five-Step Financial Statement Analysis Plan - Operating Performance 00:23:47
10. The Five-Step Financial Statement Analysis Plan - Cash Flow 00:27:47
11. Personal Cash Flow (Business Owner/Guarantor) 00:33:17
12. Global Cash Flow 00:35:38
13. The Three Most Common Bank Loan Covenants 00:37:31
14. Other Cash Flow Analysis Models 00:39:09
15. Cash Basis Cash Flow 00:43:40
16. Real Estate Cash Flow (Commercial Building) 00:48:26
17. Other Issues in Financial Statement Analysis 00:54:16
18. Sample Contractor Balance Sheet Example 01:00:18
19. Sample Contractor Financial Analysis Example 01:02:01
20. Sample Contractor Income Statement 01:02:35
21. Sample Contractor Cash Flow Statement 01:04:04
22. Sample Contractor Industry Classification 01:06:44
23. Sample Contractor Financial Analysis 01:08:52
24. How to Calculate a Z-Score 01:16:36
25. Bankruptcy Predictor 01:19:23
26. Sustainable Growth Rates (SGR) from a Financial Perspective 01:23:13
27. Sustainable Growth Model 01:25:19
28. Final Thoughts 01:29:50
29. Presentation Closing 01:41:38

• 

  David L. Osburn, MBA

  David is the founder and managing member of David L. Osburn & Associates LLC, a Las Vegas-based business training and contract CFO firm that provides seminar/keynote speeches for various groups including CPAs, bankers, attorneys, credit union employees, credit managers, trade groups, and busines [...]

  View Full Profile

• Accounting (ACCG) 00:08:23
• Accounts Payable (AP) 00:15:57, 00:19:13
• Accounts Receivable (AR) 00:16:03, 00:19:08
• Amortization 00:32:17
• Asset 00:09:34, 00:13:51, 00:25:22
• Balance Sheet (BS) 00:08:41, 00:58:04, 01:06:32
• Bankruptcy 01:19:23
• Cash Basis Cash Flow 00:37:47
• Cash Flow (CF) 00:06:10, 00:08:04, 00:28:28, 00:35:41, 00:37:57, 00:39:16, 01:07:30
• Cash Flow Statement 00:08:42
• Debt Coverage Ratio (DCR) 00:30:37, 00:36:26, 00:47:24
• Dividends 00:44:39
• EBITDA 00:29:28, 00:35:50, 00:38:06
• Equity 00:20:50, 00:23:19
• Expenditure 00:44:36
• Financial Statement 00:08:27, 00:10:24, 00:16:08, 00:27:07, 00:57:59, 01:19:53
• Financial Statement Analysis 00:00:06, 00:03:32
• Fixed Charge Coverage (FCCR) 00:40:05
• Income Statement 00:08:40, 00:58:01, 01:02:05
• Inventory 00:15:58, 00:16:50, 00:18:56
• Liabilities  00:09:35, 00:20:57
• Z-Score 01:16:42, 01:19:47

Accounting (ACCG): A systematic way of recording and reporting financial transactions for a business or organization.

Accounts Payable (AP): The amount of money a company owes creditors (suppliers, etc.) in return for goods and/or services they have delivered.

Accounts Receivable (AR): The amount of money owed by customers or clients to a business after goods or services have been delivered and/or used.

Amortization: An accounting term that refers to the process of allocating the cost of an intangible asset over a period of time. It also refers to the repayment of loan principal over time. (investinganswers.com)

Asset: Property owned by a person or company, regarded as having value and available to meet debts, commitments or legacies.

Balance Sheet (BS): A financial report that summarizes a company's assets (what it owns), liabilities (what it owes) and owner or shareholder equity at a given time.

Bankruptcy: is a legal proceeding in which a debtor declares their inability to pay back their creditors.

Cash Basis Cash Flow: Cash accounting reflects business transactions on a company's financial statements when the cash flows into or out of the business.

Cash Flow (CF): The revenue or expense expected to be generated through business activities (sales, manufacturing, etc.) over a period of time.

Cash Flow Statement: In financial accounting, a cash flow statement, also known as statement of cash flows, is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, and breaks the analysis down to operating, investing, and financing activities.

Debt Coverage Ratio (DCR): The debt service coverage ratio, also known as "debt coverage ratio", is the ratio of operating income available to debt servicing for interest, principal and lease payments. It is a popular benchmark used in the measurement of an entity's ability to produce enough cash to cover its debt payments.

Dividends: A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits. When a corporation earns a profit or surplus, the corporation is able to re-invest the profit in the business and pay a proportion of the profit as a dividend to shareholders.

EBITDA: EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization and is a metric used to evaluate a company's operating performance. It can be seen as a proxy for cash flow.

Equity: The total value of your business after you’ve subtracted what you owe [“liabilities”] from what you own [“assets”].

Expenditure: An expenditure is money spent on something. Expenditure is often used when people are talking about budgets.

Financial Statement: Financial statements (or financial reports) are formal records of the financial activities and position of a business, person, or other entity. ... A balance sheet or statement of financial position, reports on a company's assets, liabilities, and owners equity at a given point in time.

Financial Statement Analysis: Financial statement analysis is the process of evaluating a company's financial health and performance by reviewing its financial statements. It's used by a variety of stakeholders to make decisions about a company's financial status.

Fixed Charge Coverage (FCCR): The fixed-charge coverage ratio (FCCR) measures a firm's ability to cover its fixed charges, such as debt payments, interest expense, and equipment lease expense. It shows how well a company's earnings can cover its fixed expenses. Banks will often look at this ratio when evaluating whether to lend money to a business.

Income Statement: One of the three primary financial statements used to assess a company's performance and financial position (the two others being the balance sheet and the cash flow statement). The income statement summarizes the revenues and expenses generated by the company over the entire reporting period. (investinganswers.com)

Inventory: A company's inventory typically involves goods in three stages of production: raw goods, in-progress goods, and finished goods that are ready for sale. Inventory or stock refers to the goods and materials that a business holds for the ultimate goal of resale, production or utilization.

Liabilities (current and long-term) (CL, LTL): A company's debts or financial obligations incurred during business operations. Current liabilities (CL) are those debts that are payable within a year, such as a debt to suppliers. Long-term liabilities (LTL) are typically payable over a period of time greater than one year. An example of a long-term liability would be a multi-year mortgage for office space.

Z-Score: The Z-score formula for predicting bankruptcy was published in 1968 by Edward I. Altman, who was, at the time, an Assistant Professor of Finance at New York University. The formula may be used to predict the probability that a firm will go into bankruptcy within two years.