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Onsite Seminar


Buyer Analysis of Financial Statements

Suppliers' financial stability is essential to maintaining a viable and reliable supplier base. Such information is needed as part of evaluating new suppliers and needs to be reviewed on a regular basis for key suppliers already in the supplier base.

You Will Learn
  • How to develop a monitoring process and policy for suppliers' financial status
  • How to understand the sources of information
  • How to interpret financial and related reports and their impact on the buyer's company
  • How to develop anticipatory action plans for suppliers in financial difficulty
Course Outline
  1. Available reports: public versus privately held companies
  2. SEC required reports
  3. Sources of information: company reports, SEC/EDGAR, private audits, new reports, commercial evaluation services
  4. Ratio analysis and what they mean
  5. Trends of business
  6. How to detect good reports but bad business
  7. Going beyond the ratios: the signs of danger
  8. The importance of on-site evaluations
  9. Placing a supplier on alert status: steps to take
  10. The likely impact of supplier bankruptcy: what buyers can do
Who Should Attend

Buyers and other personnel who evaluate suppliers. This seminar is valuable to those who want to improve their ability to interpret suppliers' financial and other reports and assess the potential impact on the supply chain.