Evaluation:A four-part process The purpose of credit analysis is to identify and define the lender's risk in making a loan. ▣Four-part process: ■ Overview of management,operations,and the firm's industry ■ Common size and financial ratio analysis ■ Analysis of cash flow Projections and analysis of the borrower's financial condition 麓的贫香小手Evaluation: A four Evaluation: A four -part process part process † The purpose of credit analysis is to identify and define the lender’s risk in making a loan. † Four-part process: „ Overview of management, operations, and the firm’s industry „ Common size and financial ratio analysis „ Analysis of cash flow „ Projections and analysis of the borrower’s financial condition