Overview
Financial Analysis for Credit Course Overview
This Financial Analysis for Credit course looks at the methods and techniques used by credit analysts and commercial bankers within the industry. This course will teach students how to conduct both horizontal and vertical analysis using ratio analysis to develop an understanding of a company’s financial standing. Additionally, students will learn how to perform industry benchmarking using information derived from the three financial statements to evaluate a company’s performance and what those numbers mean in the context of a lending scenario. This course provides a real-world perspective and takes a hands-on approach to outlining how a credit analyst or commercial banker should evaluate the liquidity, leverage, and coverage of a company. The practical exercises and methods explored in this course will be useful for any credit professional or financial analyst that wishes to work in commercial banking, business banking, lending, risk management, or underwriting.
Financial Analysis for Credit Learning Objectives
Upon completing this course, you will be able to:- Understand the components that go into financial analysis
- Calculate the key performance ratios that credit professionals use to assess a company’s profitability and efficiency
- Calculate the key financial ratios that credit professionals use to assess a company’s liquidity, leverage, and coverage
- Undertake a vertical analysis to determine profitability from the income statement and proportionality from the balance sheet
- Undertake horizontal analysis to spot trends and analyze their meaning
- Perform industry benchmarking
- Assess an organization, its competitive advantage, and its management team.
Who should take this course?
This Financial Analysis for Credit course is designed for current and aspiring credit analysts, lending professionals, risk management professionals, and commercial bankers seeking a more comprehensive understanding of financial analysis and its applications in the credit industry. This course provides an in-depth look at the different analysis techniques used by credit professionals within the industry. By providing students with the relevant methodologies used within the financial sector, this course aims to empower the skillsets of current and future banking professionals.
Financial Analysis for Credit
Get Started
Level 3
Approx 7.5h to complete
100% online and self-paced
Get Recognized With CFI
See All Certification ProgramsWhat you'll learn
Lesson
Multimedia
Exams
Files
Vertical & Horizontal Analysis
Financial Analysis Overview
Free Preview
Performing Financial Analysis
Free Preview
Forms of Financial Analysis
Free Preview
Introducing Ratio Analysis
Breaking Down the Income Statement
Gross Profit Margin
Operating Profit Margin
EBITDA Margin
Net Profit Margin
Vertical Analysis Demonstration
Horizontal Analysis
Interactive Exercise 1
Benefits of Horizontal Analysis
Horizontal Analysis Demonstration
Benchmarking
Benchmarking Demonstration
Download Complete Files
Leverage
Leverage and Capital Structure
Breaking Down the Cash Flow Statement
Cash Flow Analysis
Debt as a Funding Source
Effective Capital Structures
Equity - Common Shares
Interactive Exercise 3
Equity - Preferred Shares
Equity - Preferred Shares Example
Equity - Retained Earnings
Leverage Ratios
Debt to Equity
Total Liabilities to Tangible Net Worth
Debt to EBITDA
Interactive Exercise 4
Related Party Loans
Leverage Ratios Example
Additional Credit Analysis Topics
Conclusion
Qualified Assessments
This Course is Part of the Following Programs
Why stop here? Expand your skills and show your expertise with the professional certifications, specializations, and CPE credits you’re already on your way to earning.
Commercial Banking & Credit Analyst (CBCA)® Certification
Financial Analysis for Credit is part of the Commercial Banking & Credit Analyst (CBCA)® certification, which includes 58 courses.
- Skills Learned Financial Analysis, Credit Structuring, Risk Management
- Career Prep Commercial Banking, Credit Analyst, Private Lending
What our students say
make it exercises to familiar easily
Arefayne Wodajo
Financial Analysis is vital in Credit Program
This course is providing details on how a company financial ratios affect the credit analyst decision on giving a credit
This course is providing details on how a company financial ratios affect the credit analyst decision on giving a credit
Arvin winatha
A very detailed and technical lesson
The deep dive into financial analysis is profound. Technical concepts are explained and demonstrated in great detail.
The deep dive into financial analysis is profound. Technical concepts are explained and demonstrated in great detail.
Nsika Mabuza
Great Information
The course material was excellent and relevant to a Commercial Credit Analyst. This would be a great course for someone new to Commercial Credit. I enjoyed the mini quizzes and interactive exercises to solidify the concepts. The assessment was a good review of what you learned.
The course material was excellent and relevant to a Commercial Credit Analyst. This would be a great course for someone new to Commercial Credit. I enjoyed the mini quizzes and interactive exercises to solidify the concepts. The assessment was a good review of what you learned.
