Debt Analysis Methods from Alexander Miller & Associates

The method of debt and debtor data analysis at Alexander Miller & Associates is based on the investigative reports generated from the first phase of debt recovery processes. Analytical methods are derived from the standard formulae related to accounting and finance, trade and commerce, infrastructure and asset, liabilities and loans etc. The report generation is aimed at the single goal of assessing the debt repayable capacity of the debtor company. If this capacity is established on the positive end, the analysis team will try and determine the probable time period within which they could be able to repay, considering all the sources of income and expenditure in the broader perspective.

Analytical Procedures from Alexander Miller & Associates

Infrastructure Analysis: РThe analysis includes the building, machinery and equipment, land and other immoveable assets. To some extent this phase may coincide with the asset analysis phase also. However it expands to include the human resources, technology, hardware and software, furniture and fixture, vehicles, business and trading establishments etc.  This process gives an idea about the infrastructural investment ability and the total value of the infrastructure. HR infrastructure could be evaluated based on the output generated by the workforce and staff for a period of time. Then it is calculated over specific financial years. The average value is considered for the analysis purpose.

Asset Analysis: – This phase includes all the moveable and immoveable forms of assets. All the evaluations would be based on the current market value, considering the aging and depreciation factors. This data could be useful in stalking the claims of debt recovery even when the debtor chooses to declare insolvency. In such cases the total value of the assets are calculated and the depreciation value is subtracted to get the net worth of the asset.

Liability and Loan Analysis: РAll the raw materials, finished goods, insurance, mortgages and other liability factors are taken into consideration at this stage.  Outstanding loans from machine suppliers, raw material suppliers and service providers etc are also taken into account. All this data can be considered not only for the purpose of statistics, but also to get the rating of the debtor company and its transactions with all these entities. In fact they can be presented in the court of law to enforce legal obligation for debt repayment by the debtor company. The experts at Alexander Miller & Associates can prepare a complete and accurate report which gets updated during the debt recovery period to know the status changes. Similar updates can also be applied for assets and infrastructural features.

Business and Trading Analysis: This phase is considered to be critical for the evaluation of profit and loss and the balance sheet. The investigative data from the team is compared with the balance sheet published by the company. The gaps between the two can be considered for the purpose of evaluating the actual P & L status of the company at present. Even this data can be updated during debt recovery period.