CIFHA study materials
CIFHA study resources

CIFHA study plan

CIFHA · Give each week a clear focus.

8 weeks · About 6 hours per week

Week 1

Financial Statement Analysis

  • Reconstruct a three-statement model from a raw annual report and label every line item by financial-statement category

  • Compute vertical and horizontal common-size statements for two consecutive years and annotate the three largest shifts

  • Identify revenue-recognition and expense-timing choices that distort comparability between periods

  • Explain how changes in working-capital accounts propagate from the balance sheet to the income statement and cash flow statement

Your checkpoint

A one-page annotated common-size analysis of a public company's two most recent annual statements, with the three largest shifts flagged and explained

Week 2

Financial Statement Analysis

  • Compute and interpret basic and diluted EPS, including the effect of dilutive securities on the denominator

  • Adjust reported earnings for one-time items and non-cash charges to derive a normalized earnings figure

  • Differentiate operating from non-operating results and explain why the split matters for trend analysis

  • Detect at least three earnings-quality red flags in a set of financial statements

Your checkpoint

A reconciliation table converting reported net income to normalized earnings for one company, with each adjustment justified in a sentence

Week 3

Financial Health Assessment and Metrics

  • Calculate the core liquidity, solvency, and profitability metric set from raw statements without a formula sheet

  • Interpret each metric against an industry benchmark and state whether the gap signals strength or stress

  • Build a composite financial-health scorecard that weights metrics by relevance to a lender's perspective

  • Explain how off-balance-sheet obligations and lease treatment alter reported leverage metrics

Your checkpoint

A completed 12-metric financial-health scorecard for one company with benchmark comparisons and a one-paragraph overall health verdict

Week 4

Financial Health Assessment and Metrics & Ratio and Trend Analysis

  • Compute the full ratio family (activity, coverage, leverage, profitability) and classify each by the question it answers

  • Decompose return on equity into its margin, turnover, and leverage components and attribute the change year over year

  • Run a three-year trend analysis and separate cyclical movement from structural deterioration

  • Identify which ratios are distorted by industry norms and adjust interpretation accordingly

Your checkpoint

A three-year ratio trend workbook with a DuPont decomposition and a written attribution of the largest driver of ROE change

Week 5

Ratio and Trend Analysis & Cash Flow and Liquidity Analysis

  • Convert accrual-based net income to operating cash flow and reconcile every reconciling item to its source

  • Classify cash flows into operating, investing, and financing and judge the sustainability of each stream

  • Compute free cash flow under two definitions and explain when each is appropriate

  • Assess liquidity using cash-flow-based coverage rather than balance-sheet ratios alone

Your checkpoint

A cash flow quality assessment for one company covering OCF reconciliation, FCF under both definitions, and a liquidity conclusion

Week 6

Cash Flow and Liquidity Analysis & Risk Management and Credit Assessment

  • Build a short-term liquidity stress scenario that models a 20% revenue decline and its cash impact

  • Map a company's debt maturity profile and identify refinancing concentration risk

  • Apply a structured credit-assessment framework covering business risk, financial risk, and structural subordination

  • Assign an internal credit rating with written rationale tied to specific metrics and qualitative factors

Your checkpoint

A two-page credit memo with an internal rating, the three metrics that most drive the rating, and a stated downside trigger

Week 7

Risk Management and Credit Assessment & Financial Planning and Forecasting

  • Identify the principal financial and operational risks a lender or analyst must underwrite for a given business model

  • Translate historical performance into a defensible three-year forecast with explicitly stated drivers

  • Stress-test the forecast under base, downside, and severe scenarios and record covenant headroom in each

  • Document forecast assumptions so a third party could reproduce the model

Your checkpoint

A three-scenario forecast model with an assumptions log and a covenant-headroom table across all three cases

Week 8

Financial Statement Analysis & Financial Health Assessment and Metrics & Ratio and Trend Analysis & Cash Flow and Liquidity Analysis & Risk Management and Credit Assessment & Financial Planning and Forecasting

  • Integrate statement analysis, health metrics, trends, cash flow, risk, and forecasting into one end-to-end company assessment

  • Complete timed practice sets across all six domains and log every error by root cause

  • Re-drill weak areas until each domain's practice accuracy is consistently high

  • Summarize a full company analysis in a concise written recommendation with supporting metrics

Your checkpoint

A complete integrated company analysis and recommendation memo plus an error log showing root-cause categories and remediation for each domain

Milestones

Week 2: Produce normalized earnings from a raw annual report in under 45 minutes with every adjustment justified

Week 4: Complete the 12-metric scorecard and DuPont decomposition unaided, scoring at least 80% on a self-graded ratio drill

Week 6: Write a defensible internal credit rating with rationale that cites at least three specific metrics and one qualitative factor

Week 8: Deliver the integrated memo and demonstrate at least 80% accuracy on a full-length timed mixed-domain practice set