![]() Working capital enables a company to meet its obligations, including prompt payment to suppliers. Choose the ratios most important to your company based on your industry and geographic scope.įour insightful ratio categories to consider:.It is important to understand what is driving those differences as part of your analysis. Ratios are of more value if benchmarked with similar companies.Historical ratios are only an indicator of future forecasts and trends, not a guarantee of future performance.Ratio performance will vary by industry, management strategies, competition, and the company's life cycle. Compare and benchmark results over successive periods: You will see upward or downward trends, particularly as they compare with similar companies.Ĭhoose which ratios to focus on carefully:.This visibility will help you assess if the company has the staying power needed to support your credit line. A continued ability to meet obligations: Examining key ratios can reveal the adequacy of a company's working capital, borrowing leverage, and internal controls.A view into management successes and failures: understand a company's operating efficiencies and reveal poor management practices and broken processes.Key ratios measure the relationship between the raw numbers, providing you transparency to company performance over time in comparison to similar companies. Added performance transparency: Raw numbers come to life through the lens of trend and ratio analysis.You should consider trends, key ratios, and benchmark results with similar companies. There is more to an effective financial statement analysis than just reviewing the raw numbers on the balance sheet, cash flow, and profit and loss statements. Many credit decisions can be made with a review of the trade payment experience, the payment and risk scores reported by credit bureaus, and networking with credit managers in your industry group.īased on your company's risk tolerance and credit policy, high-value credit requests require a close look at your customer's financial statements and performance. ![]() Kimberly-Clark Customer Financial Services It's an easy and cost effective way to network and learn." I have saved and categorized hundreds of contributions on a wide variety of topics which I refer to often. I believe Credit Today's ListServ members may be the most knowledgeable Credit brain trust in existence today. For me, the greatest perk of a subscription is ListServ. "I love Credit Today and read every issue cover to cover. I try to use at least one article out of each newsletter for departmental training/discussion sessions." "The newsletter, coupled with the website and the ListServ, are to us, more valuable than any other credit publication, bar none. The Credit Today ListServ has become the pre-eminent online forum, providing an opportunity for discussion and comments (and occasional humor) from an impressive list of credit professionals." The website, with its user friendly form downloads, will take you from examples of new account credit applications to bankruptcy forms and everything in between. "Over the last 10 years I've seen Credit Today evolve from a monthly credit publication into a quality source of information and guidance for the B2B credit community. Javier Vela, Senior Credit Manager, Global Credit Services, JDA Software Group Inc. This is phenomenal and powerful forum for gaining immediate feedback, ideas, and suggestions, relative to any credit topic under the sun, all in a real-time e-mail format." "We've recently started using the ListServ tool within Credit Today. I love the site.Ĭredit & Collections Supervisor, Actuant Corporation I put out a “did you know” email 2 to 3 times per week to my staff so that they gain knowledge and can become self-sufficient in credit & collections and I use a lot of articles from Credit Today. Starting a shared service center has definitely been challenging, but I use your site all of the time for best practices and other resources. Manager of Credit & Collections, ASSA Abloy Americas Division, New Haven, CT The specific information I picked up from this one discussion saved me $10,000, enough to cover my membership for many years! ![]() Just one recent example-a conversation on the ListServ about preferential payments-gave me tips that I used in an actual case. You cover many practical topics in the credit field that I use regularly. It's nice to have these resources readily available. The plethora of articles and helpful tips written by successful subject matter experts is priceless, as their instruments (liens for example) that we may not use regularly, or situations we don't encounter daily. ![]() Credit Today is a significant resource for me and my team. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |