WHAT'S NEW?

FINANCIAL MARKET COURSES

Credit Analysis - Income Statement Analysis

This course describes in detail the structure and elements of an income statement and introduces various income/profit measures, such as gross and net income/profit, and profitability ratios, such as gross and net margins, that can be derived from income statement values. The course also covers measures such as earnings per share, dividend payout ratios, and dividend cover. A good understanding of all these measures, and related accounting policies and practices, will help credit analysts and others to understand a company’s profitability/earnings, as well as the key drivers and sustainability of this profitability/earnings.

  • OBJECTIVES

    On completion of this course, you will be able to:

    Identify the main types of revenue and expense items that appear on an income statement

    Calculate the key earnings/profitability measures and ratios that can be derived from income statement values

  • COURSE OUTLINE

    Topic 1: Income Statement Structure

    What is an Income Statement?

    Income Statement Structure

    o Single-Step Format

    o Multi-Step Format

    Sales & Revenue Recognition

    Sales Adjustments

    Cost of Sales

    o Inventory Valuation

    Operating Expenses

    Non-Operating Expenses

    Unusual or Infrequently Occurring Items

    Accruals & Provisions

    Topic 2: Earnings/Profitability Analysis

    Earnings Measures

    Profitability Ratios

    o Gross Profit Margin

    o Net Profit Margin

    o Operating Profit Margin

    o Margin Analysis

    o Peer Comparisons

    o Industry Comparisons

    o Limitations of Profitability Analysis

    Earnings Per Share (EPS)

    o Interpretation

    o Adjusting for Preferred Dividends

    o Dilution

    Dividend Payout Ratio

    Dividends Per Share (DPS)

    Dividend Cover

  • PREREQUISITE KNOWLEDGE

  • ESTIMATED COMPLETED TIME

    60 Minutes

Next Course

VIEW COURSE

INTERMEDIATE

Support

Accreditations

General: info@intuition.com

Accounts: ar@intuition.com

http://support.intuition.com

Intuition engages with over 30 accreditation bodies to ensure Know-How can be used for CPE credits. If your organization needs CPE from a body not listed below, contact us and we will endeavour to have them included.

© Copyright 2016 by Intuition. All Rights Reserved.