This project aims to analyze how corporate debt management strategies influence credit risk and overall financial stability. It focuses on understanding how firms balance debt and equity, manage repayments, and maintain liquidity to avoid financial distress and improve credit ratings.
Understand corporate debt structures including long-term and short-term borrowings.
Study financial statements of selected companies to analyze debt levels.
Calculate key ratios such as debt-to-equity ratio and interest coverage ratio.
Evaluate how companies manage debt repayment schedules.
Analyze the relationship between high debt levels and credit risk.
Compare companies with strong and weak debt management practices.
Study credit ratings assigned to companies by rating agencies.
Identify early warning signs of financial distress.
Conduct case studies of companies that faced debt crises.
Use Excel to analyze financial data and visualize trends.
Examine the role of management decisions in controlling credit risk.
Suggest best practices for effective corporate debt management.
Conclude with recommendations for improving financial stability.
