Credit analysis concerns which of the following

They may also require some previous on-the-job experience in accounting, banking, or finance. Industry certifications can also help you land a job as a credit analyst or advance your career in the field. Yes, a credit analyst can be a good job if you have an interest in accounting or finance, along with a desire to help companies and consumers make decisions regarding the extension of credit and the reduction of financial risk. According to the U. The top-paying industries for credit analysts are monetary authorities central banks ; securities, commodities, and financial investment companies; insurance carriers; and business support firms.

The states with the highest employment levels for credit analysts are California, New York, Texas, Florida, and Illinois. Corporate Finance Institute. Bureau of Labor Statistics. Career Advice. Real Estate Investing. Fixed Income Essentials. Personal Loans. Your Privacy Rights. To change or withdraw your consent choices for Investopedia.

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Special Considerations. Credit Analysts and Credit Ratings. Credit Analyst FAQs. Key Takeaways Credit analysts analyze investments and borrowers' creditworthiness to determine their potential risk for investors and lenders. They examine financial statements and use ratios when analyzing the financial history of a potential borrower.

Credit analysts are typically employed by commercial and investment banks, credit card issuing institutions, credit rating agencies, and investment companies. Credit analysts are often called credit risk analysts because credit analysis is a specialized area of financial risk analysis. Debt issuers and their instruments are assigned scores based on letter grades by credit analysts. Is a Credit Analyst a Good Job? Article Sources. Investopedia requires writers to use primary sources to support their work.

These include white papers, government data, original reporting, and interviews with industry experts.

We also reference original research from other reputable publishers where appropriate. This can provide an important reality check. Having revenue growth of 10 percent annually may sound good, but if competitors are growing at 25 percent, it highlights underperformance. The final basis consists of contractual covenants.

Lenders, investors and key customers usually require certain financial performance benchmarks. Maintaining key financial ratios and data points within predetermined limits can help these third parties protect their interests.

The information contained in this article is for generalized informational and educational purposes only and is not designed to substitute for, or replace, a professional opinion about any particular business or situation or judgment about the risks or appropriateness of any financial or business strategy or approach for any specific business or situation.

American Express makes no representation as to, and is not responsible for, the accuracy, timeliness, completeness or reliability of any opinion, advice or statement made in this article. Read more articles on financial analysis. Skip to content. Business Cards.

Payment Solutions. International Payments. Business Class. Summary Know what is financial analysis and learn about 5 key financial areas to conduct a proper financial analysis of your business. Revenues Revenues are probably your business's main source of cash. When calculating revenue growth, don't include one-time revenues, which can distort the analysis.

If a single customer generates a high percentage of your revenues, you could face financial difficulty if that customer stops buying.

No client should represent more than 10 percent of your total revenues. This ratio measures your business's productivity. The higher the ratio, the better. Join now Forgot your password? You are registered. Access to your account will be opened after verification and publication of the question.

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