Supplier Financial Viability Template12 May 2017
Use the financial viability Excel template to monitor suppliers facing severe financial difficulties. These are vendors identified as part of a risk assessment. Typically for a company going into or out of bankruptcy.
This is week six of ten free procurement templates in ten weeks. Check out other blog posts for free procurement templates from weeks one through five.
Week 1: sourcing strategy
Week 2: request for quotation
Week 3: supplier cost improvement
Week 4: flexible supplier scorecard
Week 5: supplier risk assessment
Before using the financial viability template complete the risk assessment template. Key questions regarding supplier, industry, and product risks are provided in the risk assessment.
The Excel financial viability template has several key ratios. Definitions below are from Investopedia.
- Quick Ratio - measures a company’s ability to meet its short-term obligations with its most liquid assets.
- Debt / Equity - indicates what portion of equity and debt the company is using to finance its assets.
- Operating Cash Flow - the cash generated from the operations of a company.
These ratios provide the status and progress. How bad is the situation? Is this supplier making progress over time? Working with suppliers to ensure financial viability helps maintain purchasing power.
See below for a screen shot of the supplier risk assessment template:
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