Advanced credit analysis intermediate - advanced

Different numbers are important to different people, depending on your "view of the world". This program analyzes the financials from the credit perspective, making technical adjustments to the main numbers. Using case companies, we will analyze financials using the ratios and metrics of the credit world.
Profitability and coverage ratios including problem items such as:

• Preferred stock dividends
• Zero coupon bonds
• PIK interest
• Capitalized interest
• Operating leases
• Write downs and other non-recurrings
• Litigation provisions

Capital structure and leveraged ratios including problem items such as:

• What is debt vs. equity?
• Zero coupon bonds
• Convertible debt
• Gross debt or net debt?
• Asset mix
• Stability of cash flow

Asset valuation

• M&A accounting issues
• Revaluations in some countries
• Depreciation policies
• Impact on security

Off balance sheet finance

• Operating leases
• JV''s and debt
• Cross guarantees
• Factored receivables
• Contingent liabilities
• Willingness to "walk away"

Cash flow adequacy

• Growth vs. non-growth companies
• Potential variability of cash flows
• Management strategy and execution risk
• Access to external cash sources to cover temporary shortfalls

The need for capital
Financial flexibility