Lesson 1Interpreting credit ratings and bank risk assessments for mid-cap industrial borrowersThis part shows how rating groups and banks check medium factories, explaining rating levels, score sheets, quality changes, and how these checks affect prices, rules, and getting funds.
Rating scales, outlooks, and default probabilitiesBank internal rating models and scorecardsQualitative factors in industrial credit reviewsLink between ratings, pricing, and covenantsLesson 2Benchmarking capital structure: typical debt/equity ranges and ratio interpretation using 2–3 public comparatorsThis part shows how to compare money structure with public similar companies, setting usual debt to equity levels, understanding spread in leverage, and using 2–3 examples to set target ratios and 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 3Liquidity and working capital analysis: DSO, DPO, DIO, and cash conversion cycleThis part checks cash availability and daily operations money for makers, looking at DSO, DPO, DIO, and cash cycle, and explains how rules, seasons, and supply terms change cash needs and bank help.
Calculating DSO, DPO, and DIO accuratelyInterpreting the cash conversion cycleInventory, receivables, and payables policiesLink to liquidity lines and factoring usageLesson 4Sourcing and citing public financial data and analyst reports (EDGAR, Company filings, Bloomberg/Refinitiv basics, national registries)This part introduces main places for public money and market info, like EDGAR, company papers, Bloomberg or Refinitiv, national lists, and shows how to get, match, and rightly name numbers and notes.
Reading annual reports and interim filingsBasics of Bloomberg and Refinitiv functionsUsing national company registries in EuropeReferencing analyst reports and consensus dataLesson 5Calculating and interpreting profitability metrics: EBITDA margin, net margin, ROCE, ROEThis part builds key profit measures for factories, like EBITDA margin, net margin, ROCE, ROE, and shows how to fix for one-time items, compare peers, link returns to money structure picks.
EBITDA and net margin drivers in manufacturingROCE: capital employed and operating returnsROE: leverage effects and sustainabilityPeer benchmarking of profitability levelsLesson 6Cash flow analysis: operating cash flow, free cash flow, and conversion ratiosThis part looks at cash flow papers for factory firms, focusing operating cash flow, free cash flow, conversion rates, and shows how to spot earnings quality problems, fund shortfalls, debt pay ability.
Structure of industrial cash flow statementsOperating cash flow versus EBITDA conversionFree cash flow after capex and dividendsCash flow coverage of interest and amortizationLesson 7Assessing company-specific risk profile: market, operational, currency, country, and sectoral risks relevant to automotive and renewable suppliersThis part checks firm-specific risks for car and green energy suppliers, covering market, work, money change, country, sector risks, links to ratings, needed returns, funding 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 8Interpreting income statement and balance sheet indicators for mid-sized manufacturing firmsThis part focuses reading income and balance papers for medium makers, showing revenue quality, cost build, asset use, key signs of business strength, work good, money bend.
Revenue mix, cyclicality, and customer dependenceCost structure, operating leverage, and marginsAsset base, fixed assets, and capital intensityBalance sheet strength and capital employedLesson 9Leverage and solvency metrics: net debt/EBITDA, debt/EBIT, interest coverage, current and quick ratiosThis part details debt and pay ability rates in credit check, like net debt/EBITDA, debt/EBIT, interest cover, current quick rates, explains limits, fixes, meaning over times.
Net debt to EBITDA: definition and adjustmentsDebt to EBIT and sensitivity to downturnsInterest coverage and covenant headroomCurrent and quick ratios in industrial contextsLesson 10Comparable company selection: criteria and sourcing financials for European industrial firmsThis part covers picking similar European factory companies, setting screen rules, part filters, data places, making sure peers match risk, growth, money use profiles.
Industry, size, and geographic screening criteriaBusiness model and product mix alignmentUsing databases and exchanges for peer listsCleaning and validating peer financial data
