Nothing stands worthy when there is no credibility. This statement is true in all the aspects of life, be it personal or business. It is quite obvious that the credibility of a business increases with the increase in the number of worthy assets subtracting the liabilities. Credit analysis is not an easy job. It becomes even more critical when the figures are huge and the associated obligations are multiple.
Credit Research: The approach
The research is done to determine the credit value of a business which is needed by banks to evaluate the status of the corporate borrower. In fact the process also comes in handy to evaluate the financial strength of the corporate guarantors, tenants and other entities enlisted in the business operations.
There are 5 important factors in the analysis which have to be considered in order to come up with a complete model of a company’s credit values.
This is the part where the banks or other institutions determine the ability of the business to repay the debts. In simple words it demonstrates the possible way that the business will be able to return the borrowed money.
At least 4-5 years of financial statements are reviewed in order to understand the current status of the company and its future possibilities. The trend analysis and the financial scenario is an important factor to decide the capacity of the business to repay the loaned money.
This segment answers the question when the company is unable to pay the borrowed money. It is a sort of plan B for the banks when the borrower in failing to meet its debt service obligations. The lender is then assured of the fact that despite the failure it can easily incur the amount by following the plan.
This part of the analysis determines the liquid value of the assets of the borrower. The term ‘collateral’ includes evaluation of assets, both tangible and intangible; to get the picture right before the money lending process is initiated.
The analysis of the capital determines how much skin the owners of the company have in the game. This is what describes what the owners will lose when the business fails to operate. The degree of capital determines the seriousness of the owners in the business. The higher the capital the greater risks and chances the owners will take to float when the conditions are hostile.
The term is elf explanatory. The genre of the company and its condition in the contemporary economy will be properly analyzed. The researchers will look for competition also. In addition to the economic environment the researcher will check the competitive edge of the borrower in the market and the adverse effects imparted by the industry trends.
It is assessment of the company’s behavior in the market in the terms of money and other ethical grounds. This assessment will determine whether the company has a good will among other lenders in order to assure the repay of the borrowed money in the near future. The other banks, customers and associated entities will be questioned to get the picture.
This is just a small representation of a company’s credit worthiness analysis. It might look easy but to prepare a proper credit model it needs sheer knowledge and excellent analytical skills.
About the training
The training is an internship program for the aspirants who want to learn more about the credit research and credit modeling. Knowledge is best imparted when the entire curriculum is based on a practical example. The real example gifts the learner a good experience of how the models are actually made based on practical parameters.
The online internship program is designed on the company profile of Cipla, a well known pharmaceutical venture. The entire tutorial is divided in the specific modules in order to segregate the knowledge in specific steps for precise approach and better understanding.
- Section 1
The first section includes the answers of the basic questions that might arise in the learner’s mind. In accordance with the answers, the module progresses to the next level where introduction to MS Excel will be given. The aspirant will learn the basics of accounting, valuations and other prime requirements needed to prepare a full proof financial model for credit research and rating.
This module will deal with the process of assignment formation, submission, tentative dates of submission, Questions and Answering patterns, online test formats, feedbacks etc other than the theoretical part.
The theory part involves transforming the financial statements of the company in to the Excel spreadsheets, income and expenditure formatting, ratio analysis from the credit research division and assignment formation. There are a lot of lectures based on the current scenario of the pharmaceutical industry from top notch professionals of the same sector.
- Section 3
The third section describes the use of Excel in conversion of financial statements to balance sheets and accounting. Here the learner will gain advance knowledge of Excel like formula and functions to carry out complex analysis. Several shortcuts will be taught to find and calculate information from the provided data that will be required in the financial modeling of the company. The knowledge of MS Excel will be merged with the basics of accounting and interpretation will be done.
- Section 4
The advanced part of the financial modeling will commence as the student gets introduced in this section. In this module, the aspirant will learn how to look for assumptions, projection of revenues and costs, turnover ratios, forecasting working capital in the form of diagrams, calculation of depreciation, credit risk calculation and credit ratings.
After the rating is done, he or she will learn how to come up with a respective risk profile and risk management schemes. Credit analysis reports will prepared based on the evaluation score and risk ratio.
This segment will also impart knowledge regarding the global scenario of the pharmaceutical industry for better insight in the analysis. In fact how to launch a new product will also be described to understand what the company goes through to establish a brand name.
- Section 5
The fifth and the last section deals with the part where an aspirant will be taught in details how capital budgeting is done. Calculation of marginal costing and budgetary control will be taught side by side. The learner will ear great insights regarding corporate governance, equity research and peer analysis.
Overview of the training
The comprehensive training program is a multidirectional course where the aspirant will not only learn about the credit research and risk management but will also traverse in various dimensions like:
- In-depth understanding of financial statements of practical examples.
- Basic and advanced Excel skills
- How to design a Financial Model
- How to perform credit research and credit assessment (evaluation and analysis)
- Other sectors like Construction and Real Estate other than Pharmaceutical will be covered to understand the difference in parameters as per variation in industries.
- Different rating methods
- In-depth knowledge about contemporary pharmaceutical sector with the help of numerous case studies.
Target Audience for the curriculum
The training program has vast audience as it endorses variety of skills in one package that can prove beneficiary for the almost anyone related to corporate business. Aspirants from corporate banking will be benefitted as the entire program deals in financial structures and credit valuation of a business. Business analysts will earn good insights of developing a financial model to analyze risk. Professional from pharmaceutical industry can learn the contemporary trends. In fact aspirants who want to pursue a prospective career in pharmaceutical segment can go for this elaborate program.
The online program demands a simple computer with a proper internet connection. The computer must have a contemporary version of Excel. Regarding educational background and knowledge, it will be very helpful if the aspirant have a basic understanding of Finance and Accounting.
Frequently asked questions
- What are the benefits of this program?
The program is a well structured online curriculum where the aspirants will get a variety of knowledge to enhance their skill set. Other than the vast collection of recorded webinars of the experienced corporate personnel, this program will impart deep knowledge in MS Excel, finance statements, financial modeling with the help of Excel, credit research and analysis, basics of corporate finance and many other things. This multi-variant course has a lot of practical examples apart from the theoretical platform.
- Does this program require degree in business administration?
The program can be done by anyone who is interested to know about the financial modeling and credit research. Any enthusiast from any background can go for it. In fact having a business administration degree and finance background will help the person very much and his or her understanding will take a giant leap.
- What will be the impact of the internship in my career?
The internship is designed aptly by experts for organized learning of advanced business analytical procedures. The examples that are taken in this curriculum is real and impart deep practical knowledge in Credit Research and Financial Modeling. The aspirant will learn advanced Excel and its utilization in the modeling purpose. He or she will earn immense knowledge of how a business is valuated and risk is calculated.
These particular set of credibility will enhance the skills of the professionals and the experience will be well accredited in the corporate world. The capability to identify the risk factors by a candidate is what the corporate is looking for these days. The aspirant will definitely be one step ahead of the curve.
- What is the degree of experience necessary for the internship?
The internship is designed for the students also who do not have any experience. This program can be pursued by anyone aspiring to know about the Credit Research and present scenario of the Pharmaceutical industry. It also imparts in-depth knowledge in the advanced subjects of Finance and Accounting.
I do not have a Finance background but when I started pursuing Business Management, this internship proved to be the best one for me. I went through the entire program and was enlightened with the basics of Finance subjects, Credit research and MS Excel. This program helped me to choose Finance as my majoring subject. My insights were well developed, thanks to the online internship.
After pursuing my career in the pharmaceutical management, I got a job in the marketing field. The remuneration was handsome but my profile was stuck to the particular stage. I wanted a proper boost in my skills. This is when I decided to go for the internship. The program is quite easy and can be done while you are working. The flexible classes and online videos enriched my knowledge about Credit Research. In fact the examples from the Pharmaceutical industry were worthy for me. I learned a lot of new things that took me a new level. My own organization recognized my skill and gave me a good opportunity where I can show my skills. I am very thankful for the apt online internship program.
Being an amateur in Excel and novice in Finance I was literally awestruck when I easily completed the internship at ease. The lectures and webinars were very helpful. The excellent demonstration of the Excel skills and financial models made the learning process easier and comfortable. The structure of the program is flexible and being a busy person myself I recommend that anyone can go for this program without any tension.
I am a mentor in a reputed Finance institution. Aspirant always ask me for a link of proper internship opportunity. I always suggest them for this online internship which they can go through even when they are continuing their studies. With the knowledge they gain in the institution, the extra insights helped them to create a good grip in the subjects. In fact those who were weak in Excel they learnt it so aptly that they can make their own financial models by simulating artificial examples. Thanks to the online internship program that my students have gained so much knowledge.
|Where do our learners come from?|
|Professionals from around the world have benefited from eduCBA’s Credit Research Project # 7 – Pharma Sector courses. Some of the top places that our learners come from include New York, Dubai, San Francisco, Bay Area, New Jersey, Houston, Seattle, Toronto, London, Berlin, UAE, Chicago, UK, Hong Kong, Singapore, Australia, New Zealand, India, Bangalore, New Delhi, Mumbai, Pune, Kolkata, Hyderabad and Gurgaon among many.|