 Recognizing the Trade-OffsT. H. Donaldson
Chapter 11 in Understanding Corporate Credit, 1983, pp 185-213 from Palgrave Macmillan Abstract: Abstract Credit analysis involves the intelligent dissection of the balance sheet, of relationships within and between it and profit and loss, of management and of the various features discussed in the previous chapters. The aim is to reach a balanced view of the company’s strengths and weaknesses, to identify the risks, to assess their probability and the company’s ability to survive them. To do this banks almost always need more information on the finances and on the nature of the business than companies publish or are willing to disclose. The banker must therefore constantly seek to expand his information in contacts with the company, with others in the same industry, customers and other outside analysts. Much of this information also helps the banker to market his bank’s services to best advantage; indeed, credit and marketing are in this as in other areas closely interlinked rather than conflicting as some bankers, and many customers, seem to see them. Keywords: Cash Flow; Balance Sheet; Loss Statement; Operating Profit; Bank Debt (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-17325-9_11 Ordering information: This item can be ordered from DOI: 10.1007/978-1-349-17325-9_11 Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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