Credit Analysis


The concept describes credit analysis as an organisational framework for identifying, quantifying, and comparing the costs and benefits of proposed projects.

Technique Overview

Credit Analysis

Credit Analysis Definition

Credit analysis is a method to measure or estimate the credit risk associated with an asset, business or organisation (Huang et al., 2004). In other words, credit analysis is a business activity that evaluates the creditworthiness of a business or organisation (Chandra, 2008).

Credit Analysis Description *

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Business Evidence

Strengths, weaknesses and examples of Credit Analysis *

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Business Application

Implementation, success factors and measures of Credit Analysis *

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Professional Tools

Credit Analysis videos and downloads *

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Further Reading

Credit Analysis web and print resources *

Credit Analysis references (4 of up to 20) *

  • Altman, E.I. (1968) Financial Ratios Discriminate Analysis and the Prediction of Corporate Bankruptcy. The Journal of Finance, Vol. 23(4), pp. 589-609.
  • Abraham, A., Glynn, J., Murphy, M. and Wilkinson, B. (2008) Accounting for Managers Learning. EMEA, London.
  • Baer, W., Elosegui, P., and Gallo, A. (2002) The Achievements and Failures of Argentina’s Neo-liberal Economic Policies. Oxford Development Studies, Vol. 30(1), pp. 63-85.
  • Chasan, E., and Sandra, M. (2008) WaMu Files Bankruptcy Petition in Delaware. Reuters. 27 September.

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Related Concept: Collating and Formatting Data

Before any analysis can happen, data needs to be collated from correct sources and formatted so it follows clear organisational standards. Research shows that inconsistent structures and formats make data harder to combine, process and trust (Jagadish et al., 2014). Collating and formatting ensure the dataset is clean, consistent and ready for use.