Financial Analysis, Ratios And Performance Monitoring (e-booK)

Financial Analysis, Ratios And Performance Monitoring

Basic Financial Analysis, Ratios And Performance Monitoring In Microfinance Banks is a guide participants and stakeholders in the microfinance industry through the applicable accounting and financial processes inherent in microfinance applications.

The Basic Financial Analysis, Ratios And Performance Monitoring takes an explorative approach to learning the necessary accounting and financial statements used to assess both individual and microfinance businesses. It also explores the layout of the Statement of Financial Position (Balance Sheet), the income statement (profit or loss) the cash flow statement, and the necessary loan portfolio report with practical samples on how to prepare these financial statements from scratch, relating to the different business structures.

This book is an essential building block for microfinance operators in other to understand the financial modeling required for optimal performance.

With this book, you can learn everything you need to know about microfinance finance in a nutshell.

The stakeholders in the microfinance industry need to understand the basic financial analysis used in assessing the businesses of their various
clients.

The accounting systems used in MFIs are not so different from what is obtainable in the commercial banking environment, but only some slight adjustments to reduce the watertight procedure found in the financial records of the MFB all in a bid to simplify the result. The fact that the standard of ratio measurement and indicators for MFBs adopts a unified internationally accepted format, this financial statement of both commercial banks and MFBs is formatted to meet the specific needs of both institutions. The purpose of acquiring financial statements resonates with the need to show the accurate position of both the clients and of the microfinance banks, coupled with the fact that it helps various managers and stakeholders make viable short- and long term decisions needed for operational efficiency.