In order to create a sustainable institution, MFI managers need to have the skills to analyze the financial health of their MFI. The Financial Analysis for Microfinance Institutions course provides participants with an understanding of the different ratios used by microfinance institutions, what they mean, and how they can be used to keep track of an institution’s financial performance over time. The analysis is based on financial statements that reflect management needs for clear, organized financial information. Participants learn how to format financial statements for decision making, adjust for inflation and subsidies, measure portfolio quality, efficiency, and profitability, and choose strategies to reach sustainability
Identifying relationships between each of the financial statements and between them and the portfolio report
Make adjustments for subsidized cost of funds
Trace common financial transactions through chart of accounts to financial statements
Identifying and accounting for non-cash transactions
Assess the impact of loan loss on financial statements
Calculate the five recommended SEEP asset/liability management ratios
Practicing how to calculate adjustments and ratios and the efficiency/productivity and sustainability/profitability ratios
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