When preforming credit risk analysis, try to assess the following: 

 Expected Credit Loss= Chance of Default ×Loss Given Default 

 Comment on overall assessment of the company's credit risk and chance of default. If the company is expanding, do you see any problems with the company ability to obtain credit.

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Liquidity Ratios Current Ratio Quick Ratio Cash Ratio Year(t=0) Year(t=-1) Year(t=-2) Year(t=-3) Year(t=-4) Year(t=-5) 2017 2018 2019 2020 2021 2022 167.39% 33.82% 33.82% 154.32% 28.25% 28.25% 155.39% 147.30% 176.53% 174.56% 31.80% 30.71% 24.95% 18.83% 35.16% 32.33% 41.34% 40.97% Solvency Ratios Debt Ratios: Debt to Total Assets Debt to Equity Debt to Total Capital Year(t=0) 2017 Year(t=-1) 2018 Year(t=-2) Year(t=-3) Year(t=-4) Year(t=-5) 2019 2020 2021 2022 23.66% 25.50% 24.50% 60.68% 77.66% 74.41% 30.78% 117.32% 22.92% 15.48% 69.78% 38.22% 31.58% 35.44% 32.03% 29.82% 35.20% 30.58% 256.50% 304.56% 303.76% 381.22% 304.40% 246.89% Financial Leverage Coverage Interest Ratios: EBIT Interest Coverage -239.19% Fixed Charge Coverage -211.57% -38.51% -381.68% 558.76% -1190.65% -1916.28% -1264.09% 22423.08% -1539.94% 2129.06% Liquidity Ratios Current Ratio Quick Ratio Cash Ratio Year(t=0) Year(t=-1) Year(t=-2) Year(t=-3) Year(t=-4) Year(t=-5) 2017 2018 2019 2020 2021 2022 167.39% 33.82% 33.82% 154.32% 28.25% 28.25% 155.39% 147.30% 176.53% 174.56% 31.80% 30.71% 24.95% 18.83% 35.16% 32.33% 41.34% 40.97% Solvency Ratios Debt Ratios: Debt to Total Assets Debt to Equity Debt to Total Capital Year(t=0) 2017 Year(t=-1) 2018 Year(t=-2) Year(t=-3) Year(t=-4) Year(t=-5) 2019 2020 2021 2022 23.66% 25.50% 24.50% 60.68% 77.66% 74.41% 30.78% 117.32% 22.92% 15.48% 69.78% 38.22% 31.58% 35.44% 32.03% 29.82% 35.20% 30.58% 256.50% 304.56% 303.76% 381.22% 304.40% 246.89% Financial Leverage Coverage Interest Ratios: EBIT Interest Coverage -239.19% Fixed Charge Coverage -211.57% -38.51% -381.68% 558.76% -1190.65% -1916.28% -1264.09% 22423.08% -1539.94% 2129.06% Liquidity Ratios Current Ratio Quick Ratio Cash Ratio Year(t=0) Year(t=-1) Year(t=-2) Year(t=-3) Year(t=-4) Year(t=-5) 2017 2018 2019 2020 2021 2022 167.39% 33.82% 33.82% 154.32% 28.25% 28.25% 155.39% 147.30% 176.53% 174.56% 31.80% 30.71% 24.95% 18.83% 35.16% 32.33% 41.34% 40.97% Solvency Ratios Debt Ratios: Debt to Total Assets Debt to Equity Debt to Total Capital Year(t=0) 2017 Year(t=-1) 2018 Year(t=-2) Year(t=-3) Year(t=-4) Year(t=-5) 2019 2020 2021 2022 23.66% 25.50% 24.50% 60.68% 77.66% 74.41% 30.78% 117.32% 22.92% 15.48% 69.78% 38.22% 31.58% 35.44% 32.03% 29.82% 35.20% 30.58% 256.50% 304.56% 303.76% 381.22% 304.40% 246.89% Financial Leverage Coverage Interest Ratios: EBIT Interest Coverage -239.19% Fixed Charge Coverage -211.57% -38.51% -381.68% 558.76% -1190.65% -1916.28% -1264.09% 22423.08% -1539.94% 2129.06%

Answer rating: 100% (QA)

Expected credit losses are the weighted average credit losses with the probability of default ... View the full answer