- Have you ever felt lost in explaining if the current and leverage ratios were secure enough for a credit decision?
- Do you find difficulty quantifying a client’s ability to payback, and measuring the impact of that with confidence?
- Is it hard for you to assess a credit’s main weaknesses?
- Do you find it helpful to create financial projections and sensitize clients’ main risks?
- Wouldn’t you like to assess on the fly whether a client is credit-worthy or not?
Our unified approach to financial analysis is cash flow centric and aims to answer in three central questions:
- Can the client generate cash flows and is it sustainable?
- Is the cash generated enough to cover bank commitments?
- What is the client’s behavior in terms of investments and withdrawals and its future impact on ability to honor bank obligations?
The program shows you how to assess the company’s business model and its ability to generate cash flows consistently and sufficiently to pay back its bank commitments. The knowledge you acquire in this program will also allow you to advice your corporate clients on how they can improve their cash flows.
One of the benefits of being a financial consulting and training firm is that we have analyzed thousands of different companies in various industries. We have therefore unified the analytical process to carefully understand the strength of a company’s business model and how sustainable it is.
The guesswork in trying to understand financial ratios is no longer an issue because these only provide support in understanding the cash flow engine and are not key decision-making factors in themselves.
Whether you are just starting out in credit or are a seasoned credit officer, this program will help you make secure decisions that are based on quantifiable and unified metrics.
The Financial Analysis E-Learning course covers the following curriculum:
- Cash Flow Creation and Analysis
- Ratio Analysis
- Ratios and Industries
- Financial Projections
- Sensitivity Analysis
This course helps build the capability to (a) convert numbers into events, (b) understand the relationships between related numbers, (c) appreciate these relationships through the use of ratios, (d) build a future scenario of financial statements, and (e) strategize your relationship with the client from the outset.
The main focus of this course is to begin the process of forecasting future financial stability by examining the impact on cash flows from 8 business drivers, namely: Sales, Cost of Goods Sold, Selling & Administrative Expenses, Receivable Aging, Inventory Aging, Payable Aging, Capital Expenditure, and Dividends. This process is introduced in two parts: (a) Creating “What If” scenarios for each driver, and then (b) applying a set of future events to recreate the financial statements. Both parts ultimately examine the impact of future events on the client’s cash flow, and hence its ability to repay its commitments. This process is enhanced with a categorization process that helps define the risk profile of the client, and your strategy towards it, both short and long term. It is also a prelude to the risk rating of the client, and hence the level of capital adequacy required to support the relationship.
This course carries exercises related to each section, is valid for 3 months, and provides for a quiz at the end.
After completing this course, you can expect to:
- Assess in a few simple steps whether a client is credit-worthy
- Create cash flow statement in a short cut manner, using 10 easy Steps to Cash Flow analysis.
- Answer the three central questions of financial and credit analysis
- Create a financial forecast for any client
- Convert numbers into events to better understand the client’s situation
- Understand the true role of traditional ratios in analysis
- Create sensitivity scenarios for differing risks and assess the impact on ability to repay
This program is for you if any of the following scenarios apply:
- You are a seasoned banker and want to refresh your knowledge in Financial Analysis
- You are a Corporate/Commercial Relationship Manager and you want to strengthen your knowledge of Financial Analysis and minimize the subjective element in your credit-decision making
- You are an SME Relationship Manager who would like to make credit decisions on the fly given the limited time available to spend on each client
- You are a new Credit Analyst or Officer who wants to learn all about credit analysis and want to start contributing to the credit-decision process
- You are a Credit Risk Manager or Credit Auditor and want to learn how the credit-decision-making process works
- You are someone who has a general interest in credit risk and would like to learn more about it