Financial Analysis

One of a credit professional's most valuable tools is an income statement. Also known as a profit and loss (P&L) statement, the financial document records a company's performance over a period of… Read More

Mention accounts payable to most credit and receivables pros and they automatically think of their collection headaches with the people who work for their customers. But that’s only part of the… Read More

As many a credit manager has learned to their sorrow, a company’s financials are not always a sure forecast of its ability to pay you 90, or even 60, days in the future. While the company’s… Read More

With today’s unrelenting pressure to improve cash flow forecasting, credit pros need to utilize all the tools at their disposal to meet the challenge. One key to that task is enhancing the ability… Read More

For most credit executives, the best information about a customer’s creditworthiness is contained in its financial statements. The trick, once those statements have been obtained, is to know how to… Read More

Though perhaps not as certain as death and taxes, AR managers can unfortunately count on two other near certainties: Many customers will continue to drag out payments, and Overall weaker risk scores… Read More

When you are deciding whether to extend credit to a new customer or conducting a periodic review of an existing account, the company's balance sheet can be your "new best friend." The balance sheet… Read More

As a credit manager tries to determine a new or existing customer's financial stability, financial statement analysis can play a crucial part. By identifying a company's financial strengths and… Read More

by Mike Morley Careful analysis of Enron's financial statements led to a windfall for at least one hedge-fund manager. While reading Enron's financial statement notes a full year before the company

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There are various financial ratios that can impact the decision to extend credit to your customers. These ratios provide methods to quantitatively document your credit evaluation. Following is a list

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