Lesson 1Readin income statement an balance sheet signs fi mid-size manufacturin firmsDis part focus on readin income statements an balance sheets fi mid-size manufacturers, highlightin revenue quality, cost setup, asset intensity, an key signs weh show business strength, efficiency, an financial flex.
Revenue mix, cyclicality, and customer dependenceCost structure, operating leverage, and marginsAsset base, fixed assets, and capital intensityBalance sheet strength and capital employedLesson 2Leverage an solvency metrics: net debt/EBITDA, debt/EBIT, interest coverage, current an quick ratiosDis part detail leverage an solvency ratios use in credit analysis, like net debt to EBITDA, debt to EBIT, interest coverage, an liquidity ratios, an explain thresholds, tweaks, an readin across cycles.
Net debt to EBITDA: definition and adjustmentsDebt to EBIT and sensitivity to downturnsInterest coverage and covenant headroomCurrent and quick ratios in industrial contextsLesson 3Pickin comparable companies: criteria an source financials fi European industrial firmsDis part cover how fi pick comparable European industrial companies, settin screenin criteria, segment filters, an data sources, an makin sure chosen peers match similar risk, growth, an capital intensity.
Industry, size, and geographic screening criteriaBusiness model and product mix alignmentUsing databases and exchanges for peer listsCleaning and validating peer financial dataLesson 4Checkin company risk profile: market, operational, currency, country, an sectoral risks fi automotive an renewable suppliersDis part check company-specific risk fi automotive an renewable suppliers, coverin market, operational, currency, country, an sector risks, an link dese to ratings, required returns, an financin terms.
Market and demand risks in cyclical end-marketsOperational and supply chain disruption risksCurrency and country risk in sourcing and salesSector-specific risks in auto and renewablesLesson 5Cash flow check: operatin cash flow, free cash flow, an conversion ratiosDis part look at cash flow statements fi industrial firms, focusin on operatin cash flow, free cash flow, an conversion ratios, an show how fi spot earnings quality issues, fundin gaps, an debt service capacity.
Structure of industrial cash flow statementsOperating cash flow versus EBITDA conversionFree cash flow after capex and dividendsCash flow coverage of interest and amortizationLesson 6Calculatin an readin profitability metrics: EBITDA margin, net margin, ROCE, ROEDis part build core profitability metrics fi industrials, like EBITDA margin, net margin, ROCE, ROE, an show how fi adjust fi one-time items, compare to peers, an link returns to capital structure picks.
EBITDA and net margin drivers in manufacturingROCE: capital employed and operating returnsROE: leverage effects and sustainabilityPeer benchmarking of profitability levelsLesson 7Findin an citin public financial data an analyst reports (EDGAR, Company filings, Bloomberg/Refinitiv basics, national registries)Dis part bring key sources fi public financial an market data, like EDGAR, company filings, Bloomberg or Refinitiv, an national registries, an show how fi pull, match up, an cite figures an commentary proper.
Reading annual reports and interim filingsBasics of Bloomberg and Refinitiv functionsUsing national company registries in EuropeReferencing analyst reports and consensus dataLesson 8Liquidity an workin capital check: DSO, DPO, DIO, an cash conversion cycleDis part check liquidity an workin capital fi manufacturers, focusin on DSO, DPO, DIO, an cash conversion cycle, an explain how policies, season, an supply chain terms impact cash needs an bank facilities.
Calculating DSO, DPO, and DIO accuratelyInterpreting the cash conversion cycleInventory, receivables, and payables policiesLink to liquidity lines and factoring usageLesson 9Benchmarkin capital structure: usual debt/equity ranges an ratio readin wid 2–3 public comparatorsDis part show how fi benchmark capital structure wid public peers, settin typical debt to equity ranges, readin leverage spread, an usin 2–3 comparators fi set target ratios an lender comfort.
Defining peer-based target leverage rangesDebt to equity and net debt to EBITDA bandsUsing 2–3 peers to frame rating expectationsAdjusting benchmarks for size and business riskLesson 10Checkin credit ratings an bank risk fi mid-cap industrial borrowersDis part explain how rating agencies an banks check mid-cap industrial borrowers, clearin up rating scales, scorecards, qualitative tweaks, an how dese affect pricin, covenants, an gettin funds.
Rating scales, outlooks, and default probabilitiesBank internal rating models and scorecardsQualitative factors in industrial credit reviewsLink between ratings, pricing, and covenants
