Elaborate the symptoms through which an analyst can get indication about the probable financial distress of firm.
CS Professional · Financial, Treasury and Forex Management · PYQS · June 2018
Elaborate the symptoms through which an analyst can get indication about the probable financial distress of firm.
Answer & Explanation:
Following are the symptoms to get an indication of financial distress probability: Liquidity problems. Difficulty in obtaining market credit. Higher prices charged by supplier of raw materials and services. Difficulty in obtaining the market credit. Delay in payment beyond the maturity or due date of payment. Delay in realization of funds from debtors. Excessive borrowing to meet the operating expenses.
Topics: Financial Management
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