Analyzing Contractor Financial Statements
Part 2
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In this 2nd course of the Analysis of Contractors Skill Series, participants will use performance ratios and UCA cash flow statements to assess borrower risk, and analyze financial statements and contract status reports to identify trends and future cash flow results.
Certificate
1 credit or $295
Cost
1.5 - 2 Hrs.
Duration
1 hr.
Prep Time
1
Quiz
Overview
Participants explore the use of customary performance ratios, complemented by messages from the Uniform Credit Analysis (UCA) cash flow statement, to assess borrower risk and shifts in a borrower's risk profile. In addition, they examine and assess information in year-end and interim financial statements and contract status, or work in progress, reports to identify trends and developments that signal likely future financial and cash flow results for a borrower.
Who Should Attend
This Course is ideal for participants currently in or aspiring to enter the following job functions:
- Credit Management
- Commercial Credit Administration
- Commercial Real Estate Administration
- Commercial Loan Administration
- C & I Lending
- CRE Lending
- Corporate Lending
- Loan Review
- Special Assets
- Internal Audit
- Construction Lending
- Credit Analysis
- Loan Support
Prerequisites
The Understanding and Analyzing Contractor Financial Statements: Part I of II webinar or a comprehensive understanding of a) the percentage of completion method of accounting and b) the origin and derivation of all values on the contract status, or work in progress, report.
Objectives
By the end of the webinar, participants will be able to:
- Identify the benefits and limitations of a) standard performance ratios and b) the Uniform Credit Analysis (UCA) cash flow statement in assessing borrower risk and shifts in a borrower's risk profile.
- Identify profit or loss implications for a contractor signaled by reported gross margins on open contracts at year-end.
- Identify profit and loss implications for a contractor signaled by differences in reported and expected gross margins on open contracts at year-end.
- Identify profit and loss implications for a contractor signaled by movements in gross margins on open contracts over an interim period.
- Assess whether information on an interim contract status, or work in progress, report is sufficient to identify gross margins and implied profit or loss on revenue recognized by a contractor in an interim period.
- Identify the management competencies necessary to maximize the prospects of success for contractors or for any business using the percentage of completion method of accounting.
Materials(access provided with registration)
- Exercise and Solutionsfor the Understanding and Analyzing Contractor Financial Statements: Part I of II Webinar
- Credit Refresher on Percentage of Completion Method
- Financial Statements for Southwest Contractors, Inc., including the Contract Status / Work in Progress Reports
- Exercise for the Webinar
- Webinar Presentation Slides
- Webinar Poll Questions
- Webinar Poll Solutions
- Exercise Solutions
This is Course 2 of 2 in the Analysis of Contractors Skill Series
Analyzing Contractor Financial Statements Part 1
Analyzing Contractor Financial Statements Part 2
