Learning Objectives
By the end of this module, you will be able to:
Understand the Purpose and Structure of a Balance Sheet
Learn how the Balance Sheet gives a clear picture of what a client owns and owes at a point in time.
Understand the main parts of a Balance Sheet: Assets, Liabilities, and Equity, and what they tell us about a client’s financial position.
Use Financial Ratios to Evaluate a Client’s Financial Strength
Learn how to calculate and interpret key ratios, including Current Ratio, Quick Ratio, and Debt-to-Equity Ratio.
Use these ratios to assess a client’s liquidity, solvency, and overall financial stability.
Identify Financial Risks and Early Warning Signs
Look for signs of trouble such as high short-term debt, excess inventory, or slow-paying customers.
Understand how these risks impact the client’s financial stability.
Apply Balance Sheet Information to Help Structure Loans
Use your financial analysis to help structure loans that align with the client’s financial position and cash flow cycle.
Make informed credit recommendations around loan tenor, repayment types, and appropriate security.
Apply Your Knowledge to Real Lending Scenarios
Practice analysing actual Balance Sheets through case studies and exercises.
Learn to track Balance Sheet trends over time to proactively manage risk and adjust lending terms as needed.
