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Posts tagged as “Solvency”

Standard Financial Model

A standard financial model is a spreadsheet-based tool used to forecast a company's financial performance. It's an abstract, numerical representation of a business that helps analysts, investors, and managers make informed decisions.

Relationship between Financial Statements

The Balance Sheet, Income Statement, and Cash Flow Statement are three fundamental financial statements that provide a comprehensive view of a company's financial health. They are interconnected and each offers a different perspective on the company's performance and position.

Understanding Credit Risk

In the world of finance, every loan, investment, or credit agreement carries some degree of uncertainty. The possibility that a borrower might fail to meet their obligations is known as credit risk.

Financial KPIs

Financial KPIs, or Key Performance Indicators, are a set of metrics used to measure a company's financial health, performance, and progress toward its goals. They are essential tools for business owners, managers, and investors to gain insight into profitability, liquidity, and operational efficiency.

Financial Restructuring

Financial restructuring refers to the process of reorganizing a company's financial structure in order to improve its financial health, enhance liquidity, reduce debt burden, or prepare for growth.

Off-Balance-Sheet Risk

Off-balance-sheet (OBS) risk refers to the potential for financial losses or liabilities arising from activities or transactions that do not appear directly on a company's balance sheet.