The Credit Analyst Course includes

Credit Analysis for Lenders

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About

Build a comprehensive understanding of the credit process undertaken by the lenders of a loan. Examine the different risks involved against the loan, the tools used to mitigate these risks, and how to analyze a borrower’s ability to meet future obligations. The knowledge and skills developed can be applied directly to any credit analyst role.

Completion time

4 Hours

Level

Skills Certificate

About

Build a comprehensive understanding of the credit process undertaken by the lenders of a loan. Examine the different risks involved against the loan, the tools used to mitigate these risks, and how to analyze a borrower’s ability to meet future obligations. The knowledge and skills developed can be applied directly to any credit analyst role.

Completion time

4 Hours

Level

Skills Certificate

Module

Video Minutes

Excel Exercises

Credit Risk

17

0

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Video minutes17

Excel Exercises0

  • How banks make money
  • The credit perspective
  • How bad loans affect banks
  • Intro to the credit process
  • The 5 Cs of credit
  • Quantifying credit risk
  • Default risk
  • Loss given default risk

Controlling Credit Risk

39

3

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Video minutes39

Excel Exercises3

  • The components of the credit memo
  • Determining the risk in lending for various purposes
  • Using pricing and fees to mitigate risk and drive the bank’s return
  • The role of covenants in monitoring the loan
  • How banks minimize risk by selling off pieces of the loan
  • Using seniority, security, collateral and guarantees to protect the loan
  • How banks minimize risk by selling off pieces of the loan

Business Credit Risk

10

0

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Video minutes10

Excel Exercises0

  • Understanding business risk (macro, industry, and company)
  • A closer look at company risk
  • Management risk
  • Estimating business risk

Financial Risk

48

4

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Video minutes48

Excel Exercises4

  • Determining on and off-balance sheet obligations
  • Assessing the quality and efficiency of a company’s assets
  • How to calculate EBIT and EBITDA for credit analysis
  • How OWC can impact a company’s cash flow
  • Assessing cash flow adequacy
  • Measuring a companies ability to withstand fluctuations
  • Liquidity definition and calculations

Debt Capacity

36

6

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Video minutes36

Excel Exercises6

  • Determining how much room a company has to borrow additional funds
  • Analyzing a company’s cash flow to determine borrowing capacity
  • Using base case, upside, and downside scenarios to determine debt capacity
  • Using cash flow analysis to determine the timings of a loan repayment
  • Extending debt capacity using cash flows from later years in the forecast
  • Modeling credit scenarios

13 Week Cash Flow Modeling and Analysis

4.7 STARS

Star Rating
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About

Learn how to identify scenarios where companies can get into cash flow trouble and build a 13-week cash flow model for a real company that filed for bankruptcy.

Completion time

1 Hour

Level

Skills Certificate

About

Learn how to identify scenarios where companies can get into cash flow trouble and build a 13-week cash flow model for a real company that filed for bankruptcy.

Completion time

1 Hour

Level

Skills Certificate

Module

Video Minutes

Excel Exercises

13 Week Cash Flow Modeling Scenarios

62

3

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Video minutes62

Excel Exercises3

  • Use examples from real world cases to demonstrate the purpose of a 13-week cash flow (True Apparel Inc. and/or Shiloh Industries)
  • Analysis of current trends in case company (identifying areas of weakness, sources of immediate liquidity/cost savings and more)
  • Ramifications of distress (covenants, restructuring, bankruptcy and more)

Building a 13 Week Cash Flow Model

127

13

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Video minutes127

Excel Exercises13

  • Breaking down operating and non-operating expenses
  • Deep dive on OWC, including the cash flows within AR, AP and Inventory
  • Forecasting non-operating revenues expenses (assets sales, etc.)
  • Adding interest and debt service
  • Determining borrowing need/repayment ability
  • Reconciling cash flows to EBITDA and more!

Distressed Debt Restructuring

4.7 STARS

Star Rating
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About

Discover the process of restructuring debt and valuing a company on the brink of bankruptcy.

Completion time

1 Hour

Level

Skills Certificate

About

Discover the process of restructuring debt and valuing a company on the brink of bankruptcy.

Completion time

1 Hour

Level

Skills Certificate

Module

Video Minutes

Excel Exercises

Distressed Debt Restructuring

57

6

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Video minutes57

Excel Exercises6

  • Industry and company analysis
  • Using cash flows to determine debt capacity
  • Approaches to a fire sale valuation
  • Liquidating assets
  • Senior versus junior debt
  • First lien vs second lien debt

The Accountant

4.5 STARS

Star Rating
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About

Quickly and confidently interpret financial data and statements, evaluate them and use the calculated information to build high-quality reports. Real company data and the latest rules are covered to ensure the methods used and skills developed are immediately applicable in the workplace.

Completion time

13 Hours

Level

Skills Certificate

About

Quickly and confidently interpret financial data and statements, evaluate them and use the calculated information to build high-quality reports. Real company data and the latest rules are covered to ensure the methods used and skills developed are immediately applicable in the workplace.

Completion time

13 Hours

Level

Skills Certificate

Module

Video Minutes

Excel Exercises

Financial Accounting Review

30

3

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Video minutes30

Excel Exercises3

  • Making entries and ensuring the balance sheet balances
  • Preparing a balance sheet
  • Preparing an income statement from the entries to retained earnings
  • Preparing a cash flow statement from the entries to the cash account
  • A review of the different categorizations on the income statement, balance sheet, and the cash flow statement

Income Statements

59

15

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Video minutes59

Excel Exercises15

  • Revenue recognition issues
  • Cost recognition issues
  • Identifying non-recurring items from the income statement, the MD&A, the notes to the accounts and the financial statement press release
  • Calculating EBIT and EBITDA for the historical year, and on an LTM basis
  • Understand the difference between basic and diluted earnings per share and calculate recurring diluted earnings per share
  • Review company profitability compared to its peer group

Working Capital

56

12

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Video minutes56

Excel Exercises12

  • Inventory accounting including the impact on EBIT of LIFO and FIFO accounting choices (where relevant)
  • Accounts receivable and bad debts (identifying when companies are manipulating sales)
  • Accounts payable and accruals and the difference between them from a due diligence perspective
  • Other items including taxes payable, deferred revenue, and pre-paid items
  • Working capital and operating working capital and the cash impact of changes in operating working capital
  • Credit implications of working capital movements
  • Day ratios

Non-Current Assets

39

11

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Video minutes39

Excel Exercises11

  • Gross PP&E, accumulated depreciation, depreciation expense and net PP&E
  • Building a simple forecast of fixed assets
  • Establishing the age of a company’s fixed asset base
  • Finite, and infinite intangibles including goodwill
  • A review of key methods of accounting for financial investments
  • At fair value through the income statement
  • Available for sale
  • Associate (equity method) accounting

Capital Structure

50

14

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Video minutes50

Excel Exercises14

  • Debt issues and repurchases
  • Simple yield to maturity and all in cost calculations and understanding Original Issuer Discounts
  • Calculating net debt
  • Equity issuance and repurchases
  • The difference between authorized, issued and outstanding shares and multiple share classes
  • Other capital items: preference shares and convertible bonds
  • Leverage ratios
  • Debt liability maturity analysis

Accounting Ratios

41

15

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Video minutes41

Excel Exercises15

  • Profitability ratios, including margins
  • Liquidity ratios, including operating working capital
  • EBIT and EBITDA for the historical year, and on an LTM basis
  • Leverage ratios, including net debt and interest coverage
    Asset ratios

Cash Flow Statements

25

3

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Video minutes25

Excel Exercises3

  • Understanding how to categorize cash flows between operating, investing, and financing
  • Deriving a cash flow statement from two balance sheets and an income statement
  • Deriving a balance sheet from a cash flow statement and an income statement
  • Different cash flow statement presentations

Equity Method Investments

9

5

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Video minutes9

Excel Exercises5

  • What are equity method investments?
    • Equity affiliates/associates
    • Joint ventures
  • Equity method accounting
    • Income statement
    • Balance sheet
    • Cash flow statement
    • Financial statement integration

Intro to Full Consolidation

68

21

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Video minutes68

Excel Exercises21

  • M&A accounting overview
  • Balance sheet consolidation
  • Sources and uses of funds
  • Goodwill calculation
  • Income statement consolidation
  • Non controlling interests – NCI

The Modeler

4.7 STARS

Star Rating
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About

Financial modeling is one of the most useful skills in the world of finance. Knowing how to build models quickly and error-free is critical for the decisions and recommendations that they underpin. Our online financial modeling course provides the perfect introduction to building models, developing multiple techniques for a comprehensive and practical understanding of the topic.

Completion time

9.5 Hours

Level

Skills Certificate

About

Financial modeling is one of the most useful skills in the world of finance. Knowing how to build models quickly and error-free is critical for the decisions and recommendations that they underpin. Our online financial modeling course provides the perfect introduction to building models, developing multiple techniques for a comprehensive and practical understanding of the topic.

Completion time

9.5 Hours

Level

Skills Certificate

Module

Video Minutes

Excel Exercises

Introduction to Modeling

63

13

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Video minutes63

Excel Exercises13

  • Key settings
  • Formatting and layout standards
  • Building a simple income statement and balance sheet model, on one sheet, then across sheets
  • Balancing the balance sheet using the cash flow statement
  • Preparing the model for handover
  • Key formatting and putting the output into a pitch book

Three Statement Modeling with Iterations

59

15

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Video minutes59

Excel Exercises15

  • Income statement construction and highlighting key numbers
  • Calculation schedules (PP&E, retained earnings, operating working capital, and debt)
  • Balancing the balance sheet with a cash sweep
  • Calculating interest using average balances
  • Circular references and iterations
  • Working with a circular reference switch
  • Preparing the model for handover
  • Key formatting and putting the output into a pitch book

Three Statement Model Editing

44

0

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Video minutes44

Excel Exercises0

  • Steps before editing
  • Inserting a new item
  • Removing an old item
  • After editing
  • Relevant keyboard shortcut keys

Building a Model with Cash Sweep

62

17

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Video minutes62

Excel Exercises17

  • Why banks want to be repaid early
  • Cash sweep mechanisms
  • How to model cash sweeps
  • Building a three statement model with a cash sweep

Checking a Model for Integrity and Errors

36

11

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Video minutes36

Excel Exercises11

  • Top ten errors
  • Auditing and error checking toolkit
  • Checking your own model
  • Checking someone else’s model

Get Certification Recognized by Wall Street and Beyond

UPGRADE YOUR RÉSUMÉ WITH CERTIFICATION RECOGNIZED BY THE TOP 4 INVESTMENT BANKS.

The Credit Analyst is made up of 5 online skill certificate courses. Pass all 5 compulsory courses to unlock your micro-degree. Certification can easily be added to LinkedIn, demonstrating your achievement which will be recognized on Wall Street and beyond.

Our Alumni

DEMONSTRATE YOU'RE AS GOOD AS THE BEST

By completing this credit analyst course, you will be able to join our prestigious alumni on LinkedIn alongside hires at the top 4 investment banks. After becoming a member of this elite community, you can unlock exclusive benefits such as course discounts and more.

Authored by Industry Experts

Meet Chris Cordone, the voice of The Credit Analyst

Chris has over twenty years of experience teaching professionals at major investment banking, boutique, and private equity firms. Chris began his career as an investment banking analyst and associate at J.P. Morgan, specializing in high yield and acquisition finance including LBOs.

 

THIS MICRO-DEGREE HAS BEEN REVIEWED BY

Colin Evans

Managing Director at J.P. Morgan

Colin Evans is a Managing Director at J.P. Morgan and leads the financial institutions coverage team globally for Corporate Banking

Dr. Bridget Lyons

Professor of Finance

Professor of Finance at the Jack Welch College of Business at Sacred Heart University and Associate Instructor

Frequently Asked Questions

What tech do I need?

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Access your course across desktop, laptop, tablet or phone; either via our web portal or the dedicated mobile app. While we have optimized our video quality and size, we recommend a broadband connection to enable uninterrupted video playback. A PDF reader and spreadsheet application are required to open the supporting resources.

Is the the credit analyst right for me?

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This online program reflects the training new analysts receive at the leading banks. It’s designed for analysts working in credit, as well as those in private equity and sponsor advisory groups who will benefit from this insider’s approach to credit and leveraged credit analysis.

Are Financial Edge's courses credible?

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The 4 leading investment banks, as rated by the FT, hire us to train their incoming analysts. If you are looking to join the best analysts in the world, why not challenge yourself with the same content and certification with the same Wall Street instructors ready to answer your questions.

How long do I have to complete the the credit analyst course?

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We are delighted to announce that we now offer lifetime access on all online courses! Fit studying around your schedule. Learn at your own pace with on-demand video, practical examples to download and expert instructor support.

Are there any hidden costs?

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No. Everything you need to earn your micro-degree is included, from instructor-led videos and Excel exercises to the exam.

What is CPD?

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All Financial Edge online courses are CPD accredited. CPD stands for Continuing Professional Development and makes demonstrating your commitment to learning easy. Your institution or accrediting body may track CDP points through activities, units or hours. Check with the relevant party to find out how you should be monitoring your progress.