Advanced Credit Analysis: Corporate Risks, Cash Flow and Projections

BPP Professional Education
Course summary
30 hours
3,140 GBP excl. VAT
London, Online courses
Next available date: Online delivery option may be available - Please contact provider. - Online courses
Professional Training

Course description

Advanced Credit Analysis: Corporate Risks, Cash Flow and Projections  

This intermediate level five-day course develops a greater understanding of more complex accounting and analysis areas and the operating dynamics of companies. We do not recommend that you attend Advanced Credit Analysis: Corporate Risks, Cash Flow and Projections immediately after having attended Foundations for Credit Analysis: Understanding and Analysing Financial Statements . An interval of a few months between the two courses will give you valuable time to put into practice all the skills you learned at Level 1.

Suitability - Who should attend?

This course will be of benefit to those with 1-2 years’ experience of credit analysis. A familiarity with financial statements is assumed. It is also suitable for investment analysts who wish to understand a company's financial standing from a credit perspective. Those who have attended our Corporate Credit Analysis Level 1 course will be well prepared for this course.

Outcome / Qualification etc.

Learning outcomes include obtaining a greater understanding of:

  • Framework for Credit Analysis
  • Components of credit analysis: assessment of management, analysis of a company's ability to repay and protection for the lender; collateral and covenants
  • Risks to the Business
    • Macro factors: political, economic, environmental and demographic
    • Industry factors, e.g.: Growth trends, exposure to economic cycles, barriers to entry and regulation
    • Corporate specific risks, e.g.: Product/geographic diversification, support levels, strength of major customers and suppliers
  • Tools for Evaluating Corporate Strategy
    • PEST Analysis
    • Product mission matrix
    • Market life cycle
    • Product portfolio matrix
    • Porter's model of competition
    • SWOT analysis
  • Analysis of the Financial Statements
    • Accounting principles
    • Overview of main differences between UK GAAP and IFRS
    • Critical areas for review in the financial information
    • Review of balance sheet and profit and loss account
    • Off-balance sheet items
    • Adjusting the accounts for analytical purposes
    • Areas of flexibility in accounts, e.g.: Off-balance sheet financing, stock values, capitalisation of expenses and revenue recognition
  • Understanding the Business
    • Interpretation through ratio analysis
    • Liquidity and the cash cycle
    • Working investment as a measure of liquidity
    • Identifying company dynamics
  • The Dynamics of Cash Flow
    • Construction and format of cash flow statements
    • Understanding and interpretation of cash flows
    • Calculation of free cash flow
    • Debt capacity
  • Forecasting
    • Uses as a management tool
    • Forecasting key assumptions
    • Projection of the balance sheet and profit and loss account
    • Forecasting cash flow
    • Sensitivity analysis
  • Corporate Failure
    • Identifying warning signs
    • Reasons for corporate failure
    • The critical role of management
  • Collateral Supporting the Debt
    • Why take collateral?
    • Priority of creditors' claims
    • Insolvency law and how it affects lenders' rights
  • Covenants to Protect the Lender
    • Affirmative/negative covenants
    • Financial covenants
  • Structural subordination

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About provider

BPP Professional Education

BPP Professional Education -  Accountancy, Tax, Financial Services, Law & Insolvency Courses

BPP Professional Education is one of the specialist examination-based and professional development training arm of the BPP Group, Europe's biggest professional education and publishing provider with 2,000 staff members across 40 countries and over 30,000 students per year. BPP Professional Education...

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BPP Professional Education

3 London Wall Buildings
EC2M 5PD London

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