Sheet Metal & Air Conditioning Contractors’ National Association

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Recap of SMACNA’s Financial Boot Camp

May 30, 2019

IMG_1399 379x453SMACNA members from multiple chapters recently traveled to Tempe, AZ to take part in SMACNA’s Financial Boot Camp. The program was led by industry expert John Murdough, partner at Henry+Horne.

Program participants learned about the concepts and importance of accounting and how to interpret it as it relates to revenue, gross profit and overhead. They discussed a case study using a company’s financial statements with supplementary information. This included balance sheets, statements of income and retained earnings, cash flow statements, and notes to the financial statements. Murdough discussed the effects of working capital on income statements and balance sheet transactions.

IMG_1400 591x399He also focused on financial analysis, i.e., reading and analyzing statements based on the type and size of company, and the current market. Murdough addressed profitability, liquidity, activity and financial capacity, leverage, ratios and indicators and potential fraud/deception warning signs.

Participants learned about financial indicators including debt to worth, current and quick ratios, revenues to equity and working capital, underbillings and receivables to payables.

IMG_1420 600x266In addition, they learned steps to take to develop their own financial analysis. The steps included four key areas – profitability, liquidity, leverage and capacity. Then, participants worked on a case study analyzing a company’s financial status and preparing for an annual meeting with their bonding agent and surety underwriter. Murdough discussed banking challenges, bonding issues, how the surety analyzes a company’s financial capacity, and how to improve a company’s bonding capacity.

For information on the 2020 Financial Boot Camp, please contact Bridgette Bienacker at bbienacker@smacna.org.