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Financial ratio and Credit Risk

The course will take the learner through an interaction with the experts, to assess the understanding on critical areas.

Course Instructor: Kanwaljit Singh

FREE

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Course Overview

On completing this course, you will be able to, 

a). Demonstrate competency in calculation of key financial ratios
and the understanding of relevant elements of the balance sheet
and profit & loss statement.
b). Demonstrate a command on the practical aspects of credit risk,
business risk, management and industry risk evaluation.
c). Understand the various documentary requirements of the
procedures, pitfalls in monitoring and control and trends in the
area of working capital management, and
d). Explain your role in the management of credit risk and financial
statement analysis in a more informed manner.


Methodology
A large engineering giant is coming out with bonds. An
investment guru has suggested that it is a good buy and written
a 2 pager to his clientele on the company and the issue. He is
approached by his HNI customer /s on the wheteher they should
invest in it on basis of the name of the company only?.


He explains them on all the relevant points such as -
• What is the source of information?
• What is the industry?
• What is the Management outlook?
• Personal investment and what all can go wrong?

Each course has a detailed glossary with appropriate insertions to lead the learner through relevant and subject- specific terms.

Schedule of Classes

Course Curriculum

7 Subjects

Introduction to Credit Risk analysis

Basic concepts of credit risk, why credit risk is important, factors that drive an entity to default, key elements of credit ris

Framework for analysing credit risk.

Unique aspects in assessing credit risk of an SME

Financial risk analysis

Key financial ratios to be analyzed from a lender's perspective for an SME.

Commonly used ratios, how to compute these ratios, relevance of these ratios and what is 'acceptable' level for each ratio.

Working capital cycle - tracing the cash cycle, computing key ratios

Qualitative aspects of financial analysis - assessing for future performance, financial flexibility.

How to deal with 'doctored' financial statements?

Walk-through Case study on Financial risk analysis

Course test with walk-through the participants on a live case study - Annual report, compute key ratios, form a preliminary cred

Case study

Annual report, form groups for computation of key ratios and form an opinion on financial risk

Business risk analysis

Importance of Business risk analysis, identify key factors that drive business

Use of tangible parameters to measure business risk profile of SMEs - product profile, value addition, customer profile, competi

Live examples of SMEs with strong and weak business position

Credit risk analysis

Other elements of credit risk analysis viz. promoter / management profile, parent/group support

Importance of security / collateral

Summary and Quiz

Summarize the key learnings for the course

Quiz in multiple choice questions format to validate extent of understanding

Course Instructor

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Kanwaljit Singh

30 Courses   •   7 Students