Supplier Financial Analysis

In this ISM course, you will learn critical methods related to supplier financial analysis. Having financial analysis techniques as part of your skill set as a supply management professional can help you gauge a supplier’s risk, understand its profitability and evaluate its cash efficiency. You’ll learn key calculations of ratios and how they can illuminate potential opportunities for greater savings or efficiencies. You will also explore how to compare a supplier’s financial ratios to its competitors to understand the relative competitiveness of each company. Finally, you will learn to calculate six key financial ratios and know how to apply them.

Reasons for Financial Analysis:

• Understand five key reasons for conducting a financial analysis, including new supplier evaluation, current supplier evaluation of risk, preparing negotiations, communicating with internal stakeholders, and market analysis.
• Sources for Financial Data:
• Learn several sources for finding financial data on public companies as well as financial data for private and foreign entities.

Key Ratios:

• Discover how financial analysis is concerned with understanding several key ratios between important data points in a supplier's financial statements.

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