Interpreting repayment risks suggested by the company’s historical financial performance and financial condition.
Produced by the Risk Management AssociationLDP 3.1 – Spreading Financial StatementsLDP 3.2 – Analyzing the Balance SheetLDP 3.3 – Analyzing the Income StatementLDP 3.4 – Analyzing Combined Balance Sheet and Income Statement Measures
*Only available as a series
What You’ll LearnApply financial statement spreading techniques to reclassify accounts and provide details needed to prepare financial statements for credit analysisConvert financial statements to a format that expresses accounts as percentages of total sales of or total assetsCompute a company’s liquidity using various ratiosAnalyze a company’s ability to meet its short- term obligationsDetermine how a company’s industry sector influences it financial statement characteristicsCompute a company’s leverage using various ratiosAnalyze a company’s ability to meet its long-term obligationsDetermine how a company’s industry sector influences it financial statement characteristicsCalculate and analyze a company’s profit marginsPerform a trend analysis on a company’s profitabilityCompare a company’s profitability with industry compositesCompute and analyze a company’s productivity ratiosCompare a company’s productivity trends with industry compositesCompute and analyze a company’s efficiency ratiosCompare a company’s efficiency trends with industry composites
After completing this series, students will be able to: