Financial Statement Summary
The Financial Statement Summary section is added to display the summary fields. The values displayed here are the latest year’s values or the average of all years based on the configuration and these are used for underwriting in scorecard evaluation to arrive at an overall risk score. With the global cashflow being introduced, the global debt service coverage ratio is another parameter that is used for scorecard evaluations or calculating probability of default.
This section is displayed for Asset Classes: Commercial Secured, Commercial Unsecured and Commercial Real Estate and for parties with legal entity != Individual.
When the financial statements are captured and ratios are calculated, usually the latest Balance sheet, Income Statement and Ratios are considered for risk analysis.
For example, if a borrower has submitted their company's last five year financial statements (2014 to 2019), the Ratios calculated for the year 2019 statement are considered for scorecard evaluation.
Prerequisites
Before you proceed to view the value of the fields in the Financial Statement Summary section, ensure that the following prerequisites are met:
The Financial Statement Summary configuration is done. To know how to configure Financial Statement Summary, see Q2 Origination Administration Guide > Financial Statement Summary Configuration.
An application is created.
Financial statement is added.
Steps
To view the value of the fields in the Financial Statement Summary section:
Log in to your Salesforce account.
Go to
(App Launcher) > Applications.
On the Applications tab, and from the list of applications, select the required application.
The loan dashboard is displayed.
Go to Parties > Financial Statement Summary.
| Field Name | Description and Action |
|---|---|
| Current Ratio | This is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year. = current assets/current liabilities |
| Debt Service Coverage Ratio(DSCR) | This is the ratio of operating income available to service debts. = net operating income/total annual debt payments (debt service) |
| Debt to Worth Ratio | This ratio helps the FIs to evaluate the business's financial health. = total debt/total net worth (total net worth = total assets - total liabilities) |
| Statement Year | This is the year for which these values are calculated. |
| Gross Annual Revenue | This refers to the income generated from the sales of goods, services, capital, or any other assets of the business before any expenses or costs are deducted. |
| Gross Profit Margin (%) | This is the measure of a company's profitability, calculated as the gross profit as a percentage of revenue. Gross profit is the amount remaining after deducting the cost of goods sold or direct costs of earning revenue from revenue. |
| Edit | Select this to select the year from the Statement Year list. Based on the selected year, if the financial statement is captured for that year, values of that year is populated. And if there is no financial statement captured for the selected year, then the values displayed as null. For example, if the year is selected as 2020, the total expense for that year is $575, and total expense is mapped with current ratio, then current ratio is $575. Note:
|