Course Overview

Bankers need to apply balance sheet measures to analyze the liquidity and leverage of a company. RMA's Balance Sheet Analysis will prepare learners to evaluate the strength of the balance sheet through liquidity, leverage, and net worth analysis.

Duration

2 to 3 hours

Delivery

Self-Directed Online

Program Level

Foundational

 

Prerequisites

Participants should be well versed in basic accounting for bankers, or take RMA's Accounting and Ratio Analysis before enrolling in Balance Sheet Analysis.

 

 

Who Will Benefit?

Bankers who need to interpret balance sheets will benefit from this course.

   

Learning Objectives

Upon completion of this course, participants will be able to:

• Assess a company’s ability through liquidity analysis to meet its short-term obligations.
• Calculate and interpret working capital.
• Evaluate the results of a liquidity analysis considering industry expectations. •
• Assess through leverage analysis the extent to which a company has funded its assets with debt as opposed to owner’s equity.
• Compare a company’s liability structure to its asset distribution to evaluate the risk in a company’s leverage.
• Analyze trends in the leverage of a company, including comparison with a peer composite using RMA’s Annual Statement Studies.

Methodology:

Balance Sheet Analysis uses a combination of storytelling, application challenges, microlearning, and job aids to build participants’ confidence in their ability to read and interpret balance sheets. Since learners have a wide range of financial backgrounds and everyone learns at their own pace, it is estimated that it will take between 2 and 3 hours to complete the course. Learners will have opportunities to advance through the course following the pathway that best meets their needs.