Description
Interpreting repayment risks suggested by the company’s historical financial performance and financial condition.
Produced by the Risk Management Association
Courses*
*Only available as a series
LDP 3.1 – Spreading Financial Statements
LDP 3.2 – Analyzing the Balance Sheet
LDP 3.3 – Analyzing the Income Statement
LDP 3.4 – Analyzing Combined Balance Sheet and Income Statement Measures
What You’ll Learn
After completing this series, students will be able to:
Apply financial statement spreading techniques to reclassify accounts and provide details needed to prepare financial statements for credit analysis
Convert financial statements to a format that expresses accounts as percentages of total sales of or total assets
Compute a company’s liquidity using various ratios
Analyze a company’s ability to meet its short- term obligations
Determine how a company’s industry sector influences it financial statement characteristics
Compute a company’s leverage using various ratios
Analyze a company’s ability to meet its long-term obligations
Determine how a company’s industry sector influences it financial statement characteristics
Calculate and analyze a company’s profit margins
Perform a trend analysis on a company’s profitability
Compare a company’s profitability with industry composites
Compute and analyze a company’s productivity ratios
Compare a company’s productivity trends with industry composites
Compute and analyze a company’s efficiency ratios
Compare a company’s efficiency trends with industry composites
