03.2 Credit Analysis-- Financial Variables

Question 1

Financial variables
* Liquidity:
* Profitability:

Answer 1

1. Current ratio = current assets / current liabilities
   Quick ratio = current assets – inventories / current liabilities
2. Return on assets (ROA), Return on equity (ROE)

Question 2

• Leverage: …

What do the ratios below measure?
* Inventory turnover = sales / inventory
* Total assets turnover = sales / total assets

Answer 2

Total debt / total assets

Activity

Question 3

Financial Analysis: Trends
* Quantitative methods: …
* … models
* Financial analysis techniques
* More and more use of technology
* FINTECH
* …
* Apps to …

Answer 3

Computer-based statistical analysis

Credit scoring

Artificial intelligence, machine learning

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