Course Overview

Bankers need to apply income statement measures to analyze the profitability of the company. Income Statement Analysis will prepare learners to evaluate revenue, expense, and efficiency trends. The course will also sharpen the learner's ability to dive deeper into the numbers and ask meaningful questions.

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 Income Statement Analysis.

 

 

Who Will Benefit?

Bankers who need to interpret income statements will benefit from this course.

   

Learning Objectives

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

• Internal and external trends exist and interpret their significance.
• Gross profit indicates that the company's sale of its product or service is a profitable sale. • Operating expenses are well managed to protect the gross profit.
• Operating profit indicates an appropriate balance between management of the cost of goods sold and operating expenses.
• Interest expense and nonoperating income/expense have been well managed to protect the company's operating profit.
• Any profit earned is available to pay dividends and/or be retained as earnings reinvested in owners' equity.

Methodology:

Income Statement Analysis uses a combination of storytelling, application challenges, microlearning, tools (Statement Studies), and job aids to build participants’ confidence in their ability to read and interpret income statements. Since participants 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.