Financial Performance and Credit Risk Analysis

WHAT IS THE PURPOSES OF FINANCIAL PERFORMANCE ANALYSIS

• TO EVALUATE COMAPNY PROFIT

• TO DESIGN A LOGO

• TO COUNT EMPLOYEES

• TO SELL PRODUCTS

WHAT IS CREDIT RISK

• RISK OF HIGH PROFIT

• RISK OF FAILURE TO REPAY DEBT

• RISK OF CHANGING WORKERS

• MARKETING RISK

WHICH OF THE FOLLOWING IS A PROFITABILITY RATIO

• CURRENT RATIO

• NET PROFIT MARGIN

• DBET RATIO

• INVENTORY RATIO

WHAT IS THE FUNCTION OF A LIQUIDITY RATIO

• MEASURE PROFIT

• Measure long-term debt

• Measure ability to pay short-term debt

• Measure share price

Which is an example of a leverage ratio?

• ROE

• EPS

• Debt-to-equity ratio

• Current ratio

What does EPS stand for?

• Total assets

• Earnings per share

• Total debt

• Market value

Revenue refers to

• Company debT

• Net profit

• Company income

• Share dividend

What happens when credit risk is high

• Risk of loss increases

• Profit increases

• Sales increase

• Dividend increases

Negative cash flow indicates

• High profit

• Financial problems

• Share price increases

• Debt decreases

High profitability usually

• Increases credit risk

• Reduces credit risk

• Increases debt

• Reduces sales