CCP Paper No.7 Financial Statements Analysis For Credit Managers

UNIT DESCRIPTION

This paper Financial Statements Analysis For Credit Managers is intended to equip the candidate with knowledge, skills and attitudes that will enable him/her to analyse financial statements and reports for credit applications’ assessment, evaluation and appraisal and for credit monitoring.

LEARNING OUTCOMES

A candidate who passes this paper should be able to:

• Demonstrate an understanding of the importance of financial analysis in the credit decision making process
• Use various tools and techniques of financial analysis, noting their strengths and limitations
• Analyse the financial ratios in the context of business and industry analysis given industry and market benchmarks
• Prepare a cash operating cycle and link working capital management to credit
• Identify financial distress using financial statements analysis
• Analyse the application of non-financial reports in making credit decisions