Key financials and non financial to consider while evaluating credit risk

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Key financials and non-financial factors to consider when evaluating credit risk

Financial ratios such as debt-to-equity ratio, current ratio, and interest coverage ratio
Cash flow analysis to assess the company's ability to generate sufficient cash to meet its obligations
Credit history and payment behavior of the borrower
Industry and market conditions that may impact the borrower's ability to repay
Management quality and experience
Collateral or guarantees provided by the borrower
Macroeconomic factors like interest rates and inflation
Regulatory environment and legal factors
Non-financial factors like the borrower's reputation and market position

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