Credit analysis - Financial ratios - If you were the credit manager, to which financial ratios would you pay most attention?© BrainMass Inc. brainmass.com December 24, 2021, 4:59 pm ad1c9bdddf
Credit analysis - Financial ratios - If you were the credit manager, to which financial ratios would you pay most attention?
The credit function is all about analyzing and assessing the risk of doing business with a customer on a credit basis and making balanced decisions about whether that risk is acceptable within the parameters set by the management team. The credit function is about promoting sales not deterring sales and about maximizing cash flow by collecting the money owed to the company in such a way that customers continue to buy from the company. The credit function exists to enforce credit policy and every company should have a credit policy that combines these very important and dependent functions. The credit policy defines the ultimate goal of the credit function and the role of the credit manager.
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Consider the ingredients needed to make a final ...
Credit analysis for financial ratios are examined.