I have been giving some thought to the use and abuse of customer financial ratios in which Equity is the denominator. One such ratio is the Debt to Equity Ratio calculated using this simple formula: Total Liabilities divided by Equity. I think that credit professionals need to keep in mind that Equity is a residual [...]
From time to time, subscribers to my newsletter call me for advice. Often, I can help. Occasionally, I am at a loss. Last week, I was stumped. The caller had a story and a question. The story was that she was asked to evaluate an applicant for a 7 figure credit limit. She requested and [...]
CMA has an exciting offer for our members. To complement NACM Nationals current “Take Your Pick” new member promotion, CMA has created a promotion for our current members. If a current member refers a new member to CMA by June 1, 2012 they will be eligible for a FREE registration to the NACM Western Region Credit Conference [...]
Join Now and Take Your Pick Become a CMA Member by June 1, 2012 and you can Take Your Pick from the following offers: Two years of membership for the price of one. ($465 value) – or – A FREE 2012 NACM Credit Congress Registration June 10-13 in Dallas. ($949 value)* Need to think about it for [...]
A friend of mine is an experienced credit analyst. He lost his job recently as a result of outsourcing. He learned that his employer initially hired four people in China to do his job and asked me how this could be cost-effective. I suggested the following: Assume that your salary and benefits total $50,000 a [...]
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