Digital Finance: Credit Analysis

Unit Outline (Higher Education)

Level of Unit in Course

AQF Level(s) of Course

Level of Unit in Course

Introductory

Intermediate

Effective Term:

2025/05

Institute / School :

Institute of Innovation, Science & Sustainability

Unit Title:

Digital Finance: Credit Analysis

Unit ID:

GPACC1007

Credit Points:

15.00

Prerequisite(s):

Nil

Co-requisite(s):

Nil

Exclusion(s):

Nil

ASCED:

081199

Other Change:

Brief description of the Unit

This unit aims to prepare learners to excel in ‘Credit Analyst’ roles in banks, Non-Banking Financial Companies (NBFCs) and new digital finance companies. Team projects will be based on assessing the debt/loan funding requirements of a company for new capital expenditure. Working in teams of 4-5, learners will do an in-depth analysis of the sector and the individual company’s financial performance (solvency, profitability and liquidity), assess project cash flows, and arrive at a loan decision and pricing, based on the appropriate credit policy and guidelines.

Grade Scheme:

Graded (HD, D, C, P, MF, F, XF)

Work Experience Indicator:

Placement Component: No

Supplementary Assessment:

Where supplementary assessment is available a student must have failed overall in the Unit but gained a final mark of 45 per cent or above, has completed all major assessment tasks (including all sub-components where a task has multiple parts) as specified in the Unit Description and is not eligible for any other form of supplementary assessment

Course Level:

Learning Outcomes:

Knowledge:

K1.	Identify basic financial performance metrics for companies, such as liquidity and profitability, using financial statements.

K2.	Understand the purpose of credit analysis in lending and investment decisions.

K3.	Identify simple methods of financial forecasting, including cash flow estimation.

Skills:

S1.	Identify key components of a company's financial statements, such as assets, liabilities, and equity.

S2.	Analyse financial data and present findings.

S3.	Explain simple financial observations and findings, both orally and in writing.

Application of knowledge and skills:

A1.	Use basic financial data to assess a company's financial health in terms of liquidity, profitability, and solvency, while also evaluating efficiency and growth prospects.

A2.	Prepare a concise financial analysis report summarising the key financial metrics and observations of a given company.

Unit Content:

Sprint 1 (2 Weeks)

Introduction to Credit Analysis and Financial Metrics

Students will be introduced to the basics of credit analysis and financial performance metrics. The focus will be on understanding liquidity, profitability, and solvency.

Sprint 2 (2 Weeks)

Sector Benchmarking and Market Overview

Teams will conduct an overview of the sector, identifying key financial benchmarks for liquidity, profitability, and solvency. This stage focuses on comparative sector analysis.

Sprint 3 (2 Weeks)

Understand Company Financial Performance

Teams will understand a company’s financial performance by interpreting its financial statements, including profit and loss, balance sheet, and cash flow statements.

Sprint 4 (2 Weeks)

Comparing Company Performance Against Sector Benchmarks

Teams will compare the company’s financial performance against the sector benchmarks established in Sprint 2, focusing on liquidity, profitability, and solvency

Sprint 5 (2 Weeks)

Introduction to Financial Forecasting and Cash Flow Analysis

Teams will develop basic cash flow projections and apply forecasting methods to evaluate the financial needs of the company. Deliverable: Company financial performance vs. sector benchmarks report (Team report and presentation).

Sprint 6 (2 Weeks)

Final Credit Analysis and Loan Recommendation

Teams will compile their analyses from previous sprints and provide a final credit analysis and loan recommendation based on their evaluation of financial health, sector comparison, and cash flow forecasting. Deliverable: Final credit analysis and loan recommendation report (Team report and presentation).

Graduate Attributes:

	Learning Outcomes Assessed	Assessment Tasks	Assessment Type	Weighting
1.	K1, S1, A1	Sector and company financial analysis	Team report and presentation	20-25%
2.	K1, K2, S1, S2	Company financial performance vs. sector benchmarks	Team report and presentation	20-25%
3.	K2, K3, S2, S3, A2	Financial forecasting and cash flow analysis	Team report and presentation	25-30%
4.	K1, K2, K3, S1, S2, S3, A1, A2	Final credit analysis and loan recommendation	Team report and presentation	25-30%

Adopted Reference Style:

APA

Professional Standards / Competencies:

Standard / Competency