credit analyst interview questions shared by candidates
Which specific balance sheet items would you look at to determine a company's credit worthiness?
Assets, Liabilities, and Shareholder's Equity. - Assets: Are the economic resource of the company use to operate the company include Cash, Inventory, and Equipment - Liabilities: Represent the debt of the company. - Equity: Represent the net worth of the company.
Not sure but I would say Current Liabilities to Cash and liquid assets, change in cash flows, growth of net total assets are three possibilities, although there are certainly more and better answers.
Cash balances obviously as it shows if they have the flow to support additional lines of credit, then maybe creditors as it shows a pecking order if things go south.