J B Chemicals And Pharmaceuticals Interview Questions and Answers

The debt coverage ratios that I would consider for analyzing a company are the debt service coverage ratio (DSCR) and the interest coverage ratio (ICR).

• Debt service coverage ratio (DSCR) measures a company's ability to cover its debt obligations. It is calculated by dividing the company's operating income by its total debt service.

• Interest coverage ratio (ICR) measures a company's ability to cover its interest expenses. It is calculated by dividing the company's earnings befo...read more

Key ratios to consider before giving a loan include debt-to-income ratio, loan-to-value ratio, and credit score.

• Debt-to-Income Ratio: This ratio compares a borrower's monthly debt payments to their gross monthly income. A lower ratio indicates a borrower is less risky.

• Loan-to-Value Ratio: This ratio compares the loan amount to the appraised value of the collateral. A lower ratio indicates a lower risk for the lender.

• Credit Score: A borrower's credit score reflects their credi...read more

Answers to questions related to Credit Analyst position.

• Liquidity ratios measure a company's ability to meet short-term obligations.

• Financial statement components include income statement, balance sheet, and cash flow statement.

• Current economic trends may include inflation, interest rates, and GDP growth.

• Current assets include cash, accounts receivable, inventory, and prepaid expenses.

Financial statements have three main components: balance sheet, income statement, and cash flow statement.

• Balance sheet shows the company's assets, liabilities, and equity at a specific point in time.

• Income statement shows the company's revenue, expenses, and net income over a period of time.

• Cash flow statement shows the company's cash inflows and outflows over a period of time.

• Other components may include footnotes, management discussion and analysis, and auditor's report.

Rating process timelines vary based on complexity, while default recognition typically occurs after a missed payment.

• Rating process timelines can range from a few weeks to several months, depending on the complexity of the analysis and the issuer's responsiveness.

• Default recognition usually occurs after a missed payment or breach of contract, triggering a review by credit rating agencies.

• Credit rating agencies may also consider other factors such as financial distress or bank...read more

Stock audit involves verifying and validating the physical existence and accuracy of stock holdings.

• Conduct a physical count of stock items to ensure they match the recorded quantities.

• Compare the physical count with the stock records to identify any discrepancies.

• Inspect the condition and quality of the stock items.

• Review the stock valuation methods and ensure they are applied correctly.

• Check for proper documentation and record-keeping of stock transactions.

• Perform random sa...read more

Current ratio is a financial metric that measures a company's ability to pay its short-term liabilities with its short-term assets.

• Current ratio is calculated by dividing a company's current assets by its current liabilities.

• A higher current ratio indicates a better ability to cover short-term obligations.

• For example, if a company has $100,000 in current assets and $50,000 in current liabilities, its current ratio would be 2:1.

• A current ratio of less than 1 suggests that a co...read more