The Business Risk and Loan Risk modules will analyze your company’s financial performance from both a Profitability and Liquidity perspective at the same time, giving you an overall Pass/Fail at the top of the report.
A Pass/Fail will answer these questions:
- Is my company in good financial health or not?
- Is my company able to weather economic or business downturns or not?
- Will my company be able to handle any additional liabilities or not?
- Is my company a good bet to extend lending to, and is it predicted to be a performing or failing loan if it was extended lending?
The Business Risk or Loan Risk modules are very important to pass. If not, you need to understand why, and optimize your areas of weakness in the Liquidity (including Asset Efficiency measures), Profitability and Growth “what-if” scenario-modeling reports.