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Credit & Financial Analysis

You will focus on applying the techniques of financial analysis which are most effective for evaluating a client’s financial condition, credit risk, and repayment capacity.

Description

You will utilize individual cases to enable you to analyze the dynamics of past,  present and future cash flows / repayment capacity for clients in different industries. The learning will improve your abilities to make good credit recommendations, the proper structuring of credit facilities, and the  identification of key factors affecting a client’s cash flow.

Topics covered include:

Financial Strength

 ▸Analysis of the income statement
 ▸Revenue risk, business risk, operating leverage and margin
 ▸Liquidity and cash flow
 ▸Capital structure, financial leverage, and cost of capital Cash Flow
 ▸Sources and uses of funds; operating and non-operating flows
 ▸Composition of a cash flow analysis; from EBIT to free cash flow
 ▸Projected cash flows
 ▸Verifying the internal consistency of client financial statements

Liquidity

 ▸Current and quick ratios, working capital
 ▸Operating and cash-conversion cycles
 ▸Constructing reverse cash flows
 ▸Efficiency ratios

Sustainable Growth

 ▸Product of four ratios
 ▸Implications of actual v. Sustained growth rate

› Beyond the client’s financial statements; drivers of the numbers

Available Languages

English, Mandarin, Portuguese, Spanish

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