Magazine article Business Credit

Intermediate Financial Statement Analysis: Interpretation and Credit Risk Assessment

Magazine article Business Credit

Intermediate Financial Statement Analysis: Interpretation and Credit Risk Assessment

Article excerpt

During the week of September 13-17, NACM headquarters again played host to credit professionals striving for their Credit Business Fellow (CBF) designation with the certificate session Intermediate Financial Statement Analysis: Interpretation and Credit Risk Assessment. The course focuses on understanding what is behind the numbers of financial reports by standardizing and organizing ratios. The session works from a return on equity (ROE) view, then targets the three most important aspects of a financial statement: margins, turnover and leverage.

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"We teach the class as a top-down learning tool, where we talk about the components that drive them to get to a credit decision," said instructor George Schnupp, CCE, Anixter, Inc. "We throw in an interest coverage ratio so that they can, within seconds, assess a company's financial success, forecast if they're going to do better or worse and then drill down the details of the statement. That's what I want them to take away from here. When they get back to work they can immediately employ it and the boss will be happy. …

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