"I think there are lots of people calculating various customer financial ratios every day without questioning the importance of doing so, and without knowing whether or how or when or if one or more of those ratios are relevant to their decision making process." - Michael Dennis
As a consultant, I have had more than one discussion along these lines:
Q: Why do you calculate that financial ratio?
A: It is a measure of financial leverage: a leverage ratio.
Q: True. Let me rephrase the question: How do you use that ratio to determine a customer or an applicants creditworthiness? What does that ratio tell you about either?
(a) Default on payment or
(b) The possibility that this company will become seriously delinquent in the next 12 months?
A: I am not sure how to answer that question.
Often, too many ratios are calculated and used for all the wrong reasons! This program will explain: which ratios to use AND what they tell you about your customer's creditworthiness.
In this Webinar, we will examine HOW TO USE RATIO ANALYSIS TO MANAGE CREDIT RISK AND IMPROVE DEBT COLLECTION!
to Learn More!