Credit Research
21. September 2023.
HOW TO CALCULATE PAYABLES DAYS / DPO? The flaws of the standard formula and some potential solutions
The standard textbook formula: Payables days = 365 * Trade payables / COGS (You might also see average trade payables, but for the sake of simplicity […]
16. August 2023.
What we normally think when we see the term EBITDA: 1) Revenue – Operating expenses + Depreciation and Amortization or 2) Net Income + (Net) Interest […]
14. August 2023.
Recently I came across a loan agreement which included a Debt Service Cover Ratio (DSCR) as a maintenance financial covenant. While it is a common covenant […]
11. August 2023.
Let’s look at the example of the recently bankrupted US-based trucking company Yellow Corp. Its EBITDA Interest cover ratio was as follows: 2019: 1,4x 2020: 1,1x […]
2. August 2023.
How and when should we use EBITDA and EBIT? How to decide which one is better suited in a given situation? Here are the four main […]
6. July 2023.
Limitation on dividend distributions is one of the clauses that often creates a friction between a bank and a company. The ideal position for the bank […]
3. July 2023.
ICR is often used as a financial covenant in loan documentation. Sometimes as a part of a wider fin. covenant package, but sometimes also as the […]
25. May 2023.
Here are real-life examples I have been working on recently (some are still ongoing), and how financial statements analysis is helping my clients: A niche manufacturer […]
13. April 2023.
Several examples have already shown that the opportunistic usage of EU funds has not brought the desired results. Moreover, some companies have increased their leverage beyond […]
13. April 2023.
Does this mean that EBITDA is a better metric than cash flow metrics? No. But when these are paired, we get a more complete picture. Here […]
5. April 2023.
Oftentimes companies’ reported figures point to a low credit risk, while the truth is completely the opposite. One is at risk of making a wrong decision, […]
2. April 2023.
Preliminary FY2022 accounts of the Končar Group (hereinafter: “Končar” or „the Group”) show a significant sales growth of 51,6% (+17% in 2021), driven by: (i) organic […]
5. March 2023.
Access to revolving credit lines (RCF) is vital to many companies, so it is for Just Eat Takeaway(.)com (JET), a food delivery platform. Luckily, JET has […]
5. March 2023.
After the recent announcement that the Düsseldorf-based Peek & Cloppenburg’s initiated pre-bankruptcy proceedings, Wirtschaftswoche summarized a list of all German fashion retailers which have recently undergone […]
28. February 2023.
One of the most common EBITDA adjustments is an adjustment for non-cash transactions. This means that EBITDA is reduced for inventories and trade receivables write-offs. Theoretically, […]
11. January 2023.
Last Thursday Bed Bath and Beyond (BBBY) warned it’s running out of cash and is considering bankruptcy. (For those not familiar with the company, BBBY is […]
25. October 2022.
The Croatian government has announced its plans to introduce a Sunday trading ban. The measure has been discussed in public several times already, and although nothing […]
14. September 2022.
– You want assurance that your business partners will fulfil their obligations towards you in full and on time, whether it is a payment or delivery […]
26. May 2022.
Key takeaways: Football industry generally exhibits high risks due to the unpredictability of sports results leading to highly volatile revenue and cash flow generation. Smaller […]
14. May 2022.
Below is the current list of companies in our coverage, with corresponding prices in Croatian kuna (kn) for each type of a report. (for a price […]
13. May 2022.
Does your team need a financial statements analysis template which includes best practices from leading global banks and rating agencies, and which is simple to use? […]
21. April 2022.
Once we have fully grasped a company’s operating environment and competitive position, only then we start with a financial risks analysis. This part of the analysis […]
12. April 2022.
In finance books you will most often find the following formula for the calculation of the inventory days: Inventory days = Average Inventory / COGS * […]
6. April 2022.
Devastating effect of the pandemic on the CA’s operations… Airlines industry is one of the riskiest industries, even in the absence of major negative events. It […]
