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Erudite AfricaCenter of Excellence
← Level 2: Credit Analysis and Appraisal

Financial statement analysis

Module 01 / 5 · 60 min · Free preview

Read three years of statements as a story of where cash came from and where it went, and spot when growth is eating a borrower's liquidity.

In this module you will learn to

  • Spread three years of statements into a standard format, with tangible net worth, shareholder loans and one-off items adjusted
  • Compute and interpret liquidity, leverage, profitability, activity and coverage ratios
  • Explain where a borrower's cash went using receivable, inventory and payable days
  • Judge the quality of statements and classify an auditor's qualification as major or minor

Built on

  • Erudite Africa training module: Level 2: Credit Analysis and Appraisal (October 2026)
  • Erudite Africa: Credit Analysis Training Program overview (October 2026)
  • A commercial bank's Revised Credit Procedure Manual (August 2025), unnamed
  • NBE directives as listed in the lessons: SBB/87/2024, SBB/88/2024, SBB/90/2024, NBE/INT/13/2026, CRB/02/2019, MCR/01/2020
  • Movable Property Security Right Proclamation No. 1147/2019

Examples and companies are fictional. Bank practices are shown as typical Ethiopian practice, not as any one bank's policy. Always apply your own institution's approved policy and the current NBE directives.