Reading 55 fundamentals of credit analysis questions and answers

9%S9TB%"A?ÿ>&<C&<@$"ÿH&'?#D

"E"<S%'SÿE@<U"$ÿ#&F"<"%S'ÿH&'?#D

S"'"<@Aÿ&HA%S@$%&'ÿE!'%>%C@AÿH&'?#D

89"ÿ$BC"ÿ&;ÿ><"?%$%#Uÿ$9@$ÿ#ÿ?";%'"?ÿ@#ÿ$9"ÿC&##%H%ABÿ$9@$ÿ@ÿH&<<&V"<ÿV%A;@%A&ÿC@Bÿ%'$"<"#$ÿ&<ÿ"C@BÿC<%'>%C@AÿV9"'ÿ?!"ÿ%#+

?";@!A$%#UD

><"?%$#C<"@?ÿ<#UD

?&V'S<@?"ÿ<#UD

WXC">$"?ÿA&##ÿ%#ÿS<"@$"#$ÿ&<ÿ@ÿ>&<C&<@$"ÿH&'?ÿV%$9ÿ@ÿA&V+

<">&F"<Bÿ<@$"ÿ@'?ÿ@ÿ9%S9ÿC<&H@H%ABÿ&;ÿ?";@!A$

A&##ÿ#"F"<%Bÿ@'?ÿ@ÿ9%S9ÿC<&H@H%ABÿ&;ÿ?";@!A$

<">&F"<Bÿ<@$"ÿ@'?ÿ@ÿA&VÿC<&H@H%ABÿ&;ÿ?";@!A$

Y9%>9ÿ&;ÿ9"ÿ;&AA&V%'Sÿ%#ÿ$9"ÿE&#$ÿ@CC<&C<%@$"ÿ#$<@$"SBÿ;&<ÿ@ÿ;X"?ÿ%'>&E"ÿC&<$&A%&ÿE@'@S"<ÿ!'?"<ÿ9"ÿ@'$%>%C@$%&'ÿ&;ÿ@'ÿ">&'&E%>

"XC@'#%&'Z

70705ÿ+?6

F0ÿHÿ2+ÿ.ÿÿ,-.ÿ+ÿ2+0ÿ701+ÿ7-+ÿ0ÿ4ÿ036ÿI4ÿ01ÿ14+03ÿ/ÿÿ4ÿ00.3

;17+-ÿ/0ÿ40ÿ/ÿ4ÿ7-+6I4ÿ/ÿ+0ÿ4ÿ-5ÿ01ÿ/ÿ4ÿ0ÿ+.ÿ7017+-ÿ7+5;ÿÿ4ÿ,.6F0ÿJÿ2+ÿ.ÿÿ0+ÿ/.ÿ/0ÿ4ÿ30+-ÿÿ/ÿ4ÿ01ÿÿÿ0.+05ÿ;++1ÿ70E1ÿ+.ÿÿ,+1=.ÿ,5

4ÿ018ÿ+405ÿÿ-95ÿ70705ÿ+?6ÿI4ÿ,.ÿ1+005ÿ+ÿ40.ÿ7+05ÿ3+0+ÿ/ÿ7017+-ÿ+.ÿ0ÿ7+5;6ÿG4+ÿÿKLMNÿRSPTÿ4ÿ0.0ÿ/ÿ4ÿ;+0=ÿ5.ÿÿ4ÿ40ÿ,.ÿ>ÿ;ÿ434ÿÿ-2U

F0ÿJ>ÿF0ÿG>ÿF0ÿH6

F0ÿH>ÿF0ÿG>ÿF0ÿJ6

F0ÿH>ÿF0ÿJ>ÿF0ÿG6

J$;!=$!;?@ÿ#!Q&;>%'?$%&'ÿ%#ÿRSTUÿYZW[ÿ$&ÿQ"ÿ?ÿ=;">%$?$%'Lÿ=&'#%>";?$%&'ÿ:&;+

8%L8\A%"@>ÿ=&;B&;?$"ÿQ&'>#C

P"Aÿ<&'="B$#ÿQAÿMNJ

78"ÿ$AB"ÿ&:ÿ=;">%$%#]ÿ$8?$ÿ#ÿ>":%'">ÿ?#ÿ$8"ÿB&##%Q%@Aÿ$8?$ÿ?ÿQ&;;&^";ÿ^%@:?%@&ÿB?Aÿ%'$";"#$ÿ&;ÿ"B?AÿB;%'=%B?@ÿ^8"'ÿ>!"ÿ%#+

>":?!@$%#]C

=;">%$#B;"?>ÿ;#]C

>&^'L;?>"ÿ;#]C

01234567ÿ9:6;<ÿ=ÿÿ>ÿ8,5?ÿÿ>ÿ@A=ÿ

B2CD42EÿFD42:5DC<

G4ÿH6*ÿ14ÿ@A=

A*ÿTÿS(ÿ,ÿÿ-4,ÿ(ÿS(*ÿ9*.(ÿ94(ÿ*ÿ5ÿ*+8ÿ;5ÿ*.ÿ.5(*+ÿ2ÿÿ5ÿ**,+

6.9(4ÿ2*ÿ5*ÿ2ÿ5ÿ94(8;5ÿ2ÿ(*ÿ5ÿ40ÿ*.ÿ2ÿ5ÿ*ÿ(,ÿ9*.9(4ÿ9(06ÿÿ5ÿ-,8A*ÿUÿS(ÿ,ÿÿ*(ÿ2,ÿ2*ÿ5ÿ+*(4ÿÿ2ÿ5ÿ*.ÿÿÿ*,(*0ÿ6((.ÿ9*E.ÿ(,ÿÿ-(.7,ÿ-0

5ÿ*.1ÿ(5*0ÿÿ4)0ÿ9*9*0ÿ(38ÿ;5ÿ-,ÿ.(**0ÿ(ÿ5*,ÿ9(*0ÿ+(*(ÿ2ÿ9*.9(4ÿ(,ÿ*ÿ9(068ÿR5(ÿÿVWXYÿ]^[_ÿ5ÿ*,*ÿ2ÿ5ÿ6(*7ÿ0,ÿÿ5ÿ5*ÿ-,ÿ/ÿ6ÿ5+5ÿÿ4S`

A*ÿU/ÿA*ÿR/ÿA*ÿT8

A*ÿT/ÿA*ÿR/ÿA*ÿU8

A*ÿT/ÿA*ÿU/ÿA*ÿR8

:394((

A*ÿTÿÿ(ÿ*)ÿ-,8ÿa.(ÿ50ÿ9(0ÿ*ÿ(,ÿ9*.9(4ÿ40ÿ*)ÿ26ÿ5ÿ9*E.ÿ50ÿ2(.ÿ(*ÿ22./

*)ÿ-,ÿ(*ÿ09.(440ÿ*7*ÿ(,ÿ5*2*ÿ5()ÿ5+5*ÿ6(*7ÿ04,ÿ5(ÿ+*(4ÿ-4+(ÿ-,8ÿA*ÿUÿÿ(ÿ*,-,8ÿO.9(4ÿ-,ÿ*(.ÿ09.(440ÿ*4ÿÿ(ÿ5+5*ÿ(+/ÿ(,ÿ5*2*ÿ(ÿ4S*ÿ6(*7ÿ04,/ÿ5(ÿ(ÿb)(4ÿ-,

26ÿ5ÿ(6ÿ6.9(4ÿ*8Aÿ2ÿ5ÿ5*ÿ-,/ÿA*ÿTÿ54,ÿ5()ÿ5ÿ5+5ÿ6(*7ÿ04,ÿ(,ÿA*ÿUÿ5ÿ4S8

<2*.

01234567ÿ=>6?@ÿAÿÿBÿ<(,+ÿÿBÿCDAÿE

ÿÿ(ÿ-')ÿ2).ÿ()ÿ3','ÿ3(ÿ(ÿ3/3'ÿ'0ÿ'(;/7ÿKÿ-3(/ÿ,ÿ-'+ÿ1ÿ1'-ÿ+)'ÿ20ÿ'_'/ÿ32''5'ÿÿ20ÿ2(-;ÿÿ)2ÿÿ3ÿ4ÿ,ÿ(ÿ(-_7ÿKÿ+*(ÿÿ+ÿ+*ÿ3ÿ(*ÿ,ÿ-')ÿ)2ÿ3(ÿ(ÿ2''5'-(ÿ-(''07ÿ[3ÿ-4(ÿ')-ÿ3ÿ-');ÿ,ÿ3ÿ7