CHAPTER

10

Financial Risks Analysis

Financial ratio analysis has been the greatest tool for evaluating the financial health of organizations. Because contracts involve several types of payment terms that can be agreed upon mutually during the procurement stage, the health of the supplier's organization needs to be evaluated even before considering them for the contract award.

The stock market and businesses in the United States, as well as a few other organizations across the globe, are superb because of the transparency offered to investors. Organizations publish financial data every year, along with their financial ratios, so that investors can decide whether to invest in the organization or not.

In the same way, financial ratios can ...

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