Unparalleled
financial scoring and analysis capabilities
Do
you need to perform detailed analysis of a firm's
financials? Don't just eyeball financial statements
or review basic ratios with little relative perspective.
Firms from different industries and different sizes
have different metrics to be measured against in order
to make an objective decision.
Corporate
Credit Manager automatically computes the financial
ratios and compares them to their peers within the
same financial year by industry (SIC) and size (assets
or sales).
Financial scoring of 18 default ratios compare by
Liquidity, Profitablity, Leverage, and Audit Quality.
You can also create your own ratios to score.
The ratios are compared to other peer firms. You
can choose the peer group such as RMA (aka Robert
Morris Associates or Risk Management Associates),
your own peer group from your database, or any other.
Unlike some agency norms which under represent weaker
firms, the RMA database is compiled by financial institution
borrowers and prospects of strong, average, and weak
customers. In this way, you can truly see the relative
strength of a firm compared to its peers rather than
just a generic measure or under represented comparison.
For instance, you can look at small firms in an industry
to other small firms in the same industry with confidence.
Bankruptcy prediction scores are also computed using
the Altman Z Wholesale and Retail models. Altman Z
is the gold standard for bankruptcy prediction within
the next 24 month period. Z-Scores forecast distress
using discriminate analysis. This score can be computed
if you have a financial statement. The score can be
used both for public and private firms. The wholesale/retail
model (also called Non-Manufacturers and Emerging
Markets model) is a slight modification of the original
model to minimize the potential industry effect likely
to take place when an industry-sensitive variable
such as asset turnover is included.
Lastly,
you have the flexibility to have unlimited financial
statement formats as well as include footnotes to
the financial statements.
Extensive
financial reporting you need
All
of the below are available as an Excel spreadsheet.
- Financial Spread Report shows your customer's
complete Balance Sheet and Income Statement using
a financial format you design.
- Variance Analysis reports the variance
for each item from one period to the next.
- Common Size Report displays the corresponding
common sizing percentages for each item.
- Financial Ratio Analysis reports your customer's
key Liquidity, Profitability, and Leverage ratios,
as well as turnover ratios and working capital information.
- Compliance - Actual vs. Industry Ratio:
Your customer's 12 key ratios are reported in comparison
to the peer group standards which are based on year
of financial information, SIC code, and Asset/Sales
range. This report allows you to easily assess your
customer's performance as compared to similar companies.
- Financial Risk Rating Analysis provides
the score for each of your customer's 12 key ratios
which is determined through comparison to the industry
standards. The financial statement score and both
Bankruptcy Z scores are reported here as well.
- Cash Flow Analysis follows FASB 95 guidelines
which require that cash receipts and payments be
classified according to whether they stem from operating,
investing, or financial activities.
