Credit Analysis is an analytical tool for measuring and understanding a borrowing entity's ability to repay its loans as agreed from cash.

This course examines credit analysis techniques that can be used to measure, understand, and interpret a borrower's cash sources for operations and repaying a loan.What You'll Learn:This presentation provides an overview of the general parameters of various operating outcomes that can be determined through basic analysis of the balance sheet and income statement of an operating business.

By attending this program, participants will be able to:

• Understand how credit analysis can be used to measure, understand and interpret an entity's cash generation and dissemination capabilities
  
• Recognize the metrics created from credit analysis that can be predictive of a company's ability to repay its operating costs and loans
  
• Identify various components of credit analysis, including liquidity, leverage, operating, coverage and break-even analysis
  
• Use different credit analysis calculations and understand how each is performed mathematically

Course Content:

• Liquidity Analysis, including an explanation of why liquidity is important to an enterprise
  
• Discussion of the effects different amounts of liquidity can have on an enterprise
  
• Definition and demonstration of the current and quick ratios, and cash conversion cycle
  
• Leverage Analysis, including explanation of why enterprises need leverage to operate, and the concepts of short term and long term debt financing
  
• Discussion of the effects different amounts of leverage can have on an enterprise
  
• Definition and demonstration if the leverage ratio
  
• Operating Analysis, including an explanation of why analyzing operating performance of an enterprise is important
  
• Discussion of the different effects efficient and inefficient operating performance can have on the health and long term survival of an enterprise
  
• Definition and explanation of the four ratios that analyze or interpret the operating performance of an enterprise