Samunnati Financial Intermediation and Services Credit Analyst Interview Questions and Answers

Financial ratios are used to evaluate a company's financial performance and health.

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

• Profitability ratios: measure a company's ability to generate profits

• Solvency ratios: measure a company's ability to meet long-term obligations

• Efficiency ratios: measure a company's ability to use its assets and resources efficiently

• Examples of ratios include cur...read more

Cash-burning concept refers to a business model that spends more money than it earns.

• It is a common strategy for startups to gain market share quickly.

• It can be risky if the company cannot secure additional funding.

• Examples include Uber, which spent billions on expansion and marketing before turning a profit.

• Credit underwriters need to assess the financial health and sustainability of companies with this model.