Ratios Across Industries: Acceptable level of ratios for different types of businesses A Conversation Between Manu & Vinu Vinu: Hey Manu, I've been wondering why there's a difference in the acceptable level of ratios for different types of businesses. I've noticed that sometimes higher ratios are in...
Unraveling the Mystery of Liquidity A Candid Conversation Between Manu & Vinu Introduction: Welcome to another exciting episode of our finance blog series, where we dive deep into the world of financial analysis. Today, we'll explore the intriguing realm of liquidity analysis. In this enlightening c...
Term Loan Appraisal : Critical Aspects Vinu, a credit analyst, is relatively new to the banking industry and has been assigned to work closely with Manu, an experienced credit manager. They are sitting in the bank's conference room, reviewing a term loan proposal from a potential borrower. Vinu take...
Decoding DSCR Why CC/OD Interest isn't in the Denominator & the Role of the Working Capital Cycle Vinu: Hey Manu, I've been scratching my head over something related to the Debt Service Coverage Ratio (DSCR). Can you help me out? I'm confused about why the interest on cash credit (CC) or overdraft (...
Exploring Hypothecation A Conversational Journey Introduction: Welcome to our conversation on hypothecation! Join Manu, the knowledgeable expert, and Vinu, the curious professional, as we dive into the intricacies of this financial concept. Hypothecation, using assets as collateral for loans, has be...