Corporate and Commercial Banking
This program is designed to give participants an overview of the key risk considerations underpinning the operating performance of any business, and the key financial measurements from the income statement and balance sheet which measure the Company’s operating and financial performance.
- Business Drivers: Identification of key business drivers in manufacturers, wholesalers, distributors and service industries
- Business Risks: Evaluation of business risks including cyclicality, seasonality and different revenue and cost structures
- Competitive Environment: Analysis of market and competitive influences, and in particular a business’s own competitive advantage
- Supply Chain Management: Analysis of customer and supplier drivers in a business’s own overall industry
- Management Ability: Assessment and measurement of management’s competence in managing for risk, and the shareholders’ support in an economic downturn
- Income Statement Cash Flow Drivers: Identification and analysis of key cash flow drivers from the income statement: revenue growth, gross margin, EBITDA margin, and net margin
- Balance Sheet Cash Flow Drivers: Identification and analysis of key cash flow drivers from the balance sheet: receivables collection, inventory turnover, accounts payable days outstanding, and fixed asset turnover ratio analysis
- Capital Structure: Identification and analysis of key liquidity and leverage metrics from the balance sheet: current ratio, quick ratio, working capital, debt/equity and debt/EBITDA
Using case examples taken from the automotive, airline, mining, steel, pulp and paper, technology, pharmaceutical, healthcare, defense, wholesaling, and service industries, the program will comprise a series of group exercises aimed at evaluating and articulating their respective business risks.
The program will also provide a framework for calculating and analyzing the key financial measurements used by banks in determining the operating and financial risks of the company.