Looking Inside the Borrower

T. H. Donaldson
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T. H. Donaldson: FCIB

Chapter 4 in Thinking about Credit, 1988, pp 59-77 from Palgrave Macmillan

Abstract: Abstract There are two parts to the analysis of any company. One looks at the company itself, the nature of its business, of the risks it faces and what it needs to protect itself against those risks — or, to put it another way, its business strengths and weaknesses. The other looks at the financial condition, profit and loss and cash flow. Neither on its own gives a complete picture. Only when we match the nature of the company’s assets with the type of finance they require, and the ability to generate profits and cash flow with the demands for cash to meet the day-to-day payments, do we begin to get a balance. Only when we know what a company needs can we know whether it has enough.

Keywords: Cash Flow; Balance Sheet; Local Currency; Foreign Currency; Transfer Price (search for similar items in EconPapers)
Date: 1988
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-19279-3_4

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DOI: 10.1007/978-1-349-19279-3_4

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