Using Ratios to measure Financial Performance
Dig deeper than the credit reference dashboard by understanding the figures beneath the headline data. Do you know the difference between profit and liquidity? How does the efficiency of your customer’s business affect their ability to pay you? And can you translate that into the creditworthiness of your corporate customers? Join this hands-on training and you will work through mock financial statements to develop skills in finding, measuring and interpreting credit risk.
What will you gain?
• Knowledge of financial ratios and their relevance to credit risk
• Formulae for calculating risk using a set of business accounts
• Analytical skills to interpret results
• Red flag warnings for monitoring credit risk
• Greater awareness of risk elements within your customer portfolio.
Who is it for?
Useful to anyone who has operational or managerial oversight of credit vetting and risk management. It can work as a single session, and forms part of the 3-component credit risk course, which covers:
• Using Financial Accounts in Credit Management
• Using Ratios to measure Financial Performance
• Using Third Party data and Measurables.
What will it cover?
• How to use ratios in a valid and meaningful way
• Identifying key ratios for profitability, liquidity, efficiency and gearing
• Measuring financial performance using ratio calculations
• Interpretation of findings in the context of credit risk
• Warning signs to watch for in results and trends.
