Course Details

Graduates of LE275, LE375, and ML375: now it is time to work on analyzing and modeling your own lending operations. Build your balance sheet while maximizing impact! In this hands-on applied workshop, using an Excel-based financial model, each participant will:

• input three years of his/her organization’s historical financial data into the Excel financial model;
• evaluate his/her organization using the CDFI Fund’s Minimum Prudent Standards, including Self-Sufficiency ratio, Deployment ratio, Operating Liquidity ratio, Current ratio, Net Asset ratio and Net Income;
• evaluate his/her organization from an analyst’s perspective through a calculation and understanding of Margin, Leverage, and Asset Turnover;
• evaluate and benchmark his/her organization's short and long term sustainability by calculating and comparing Yield on Assets, Weighted Cost of Capital, Operating Expense to Assets, and Charge-offs to Assets;
• build 7-year financial projections for his/her loan fund and model the effect of several different loan products on the organization’s annual cash flow and its balance sheet;
• manipulate the Excel model to show the impact on and sensitivity of key financial indicators by varying assumptions of asset (loan) design, capitalization choices, and line of business operating expense; and
• explore setting financial goals and designing productions and operations to meet those goals.

For most of the class time, participants will be working on their own analysis and models, with guidance from the instructor. Bring financial information for your organization -- including your most recent audit and internal financial statements, current budget, and loan portfolio information -- to the workshop to use when working on a simple model of your own organization's financials in class. Some prior experience with Excel, and at least a basic ability to read a balance sheet and income statement, are required. This class is open to graduates of LE275, LE375, ML375, and others with permission of the instructor.

Course Length: 1 Days

Tuition: $385.0

Course counts toward a professional certificate (PCP): No