Credit Analysis
USAID-Funded Economic Governance II Project Credit Risk Workshop - Intermediate March 2006
Credit Analysis
Funded by:
©2006 BearingPoint, Inc.
Table of Contents
MODULE 3: CREDIT ANALYSIS OVERVIEW............................................................................................................................................... 1 LEARNING OBJECTIVES ...................................................................................................................... 1 FINANCIAL STATEMENT ANALYSIS ........................................................................................................ 2 THE INCOME STATEMENT ....................................................................................................................... 7 THE BALANCE SHEET............................................................................................................................ 10 RATIO ANALYSIS................................................................................................................................... 12 CASH FLOW ANALYSIS ......................................................................................................................... 19 THE DIRECT CASH FLOW STATEMENT: CONSTRUCTION STEPS ........................................................... 23 CASH FLOW DRIVERS...................................................................................................................... 33 EXERCISE: NAZRAT ............................................................................................................................... 34 SUMMARY ............................................................................................................................................. 35
Central Bank of Iraq
2006
Credit Analysis
Overview
This module will review the key components of fundamental analysis of a borrower’s creditworthiness. The emphasis will be on the analysis of the income statement,
Credit Analysis
Funded by:
©2006 BearingPoint, Inc.
Table of Contents
MODULE 3: CREDIT ANALYSIS OVERVIEW............................................................................................................................................... 1 LEARNING OBJECTIVES ...................................................................................................................... 1 FINANCIAL STATEMENT ANALYSIS ........................................................................................................ 2 THE INCOME STATEMENT ....................................................................................................................... 7 THE BALANCE SHEET............................................................................................................................ 10 RATIO ANALYSIS................................................................................................................................... 12 CASH FLOW ANALYSIS ......................................................................................................................... 19 THE DIRECT CASH FLOW STATEMENT: CONSTRUCTION STEPS ........................................................... 23 CASH FLOW DRIVERS...................................................................................................................... 33 EXERCISE: NAZRAT ............................................................................................................................... 34 SUMMARY ............................................................................................................................................. 35
Central Bank of Iraq
2006
Credit Analysis
Overview
This module will review the key components of fundamental analysis of a borrower’s creditworthiness. The emphasis will be on the analysis of the income statement,