How to Evaluate EMS Manufacturer Financial Health and Financing Risk

An analytical framework for evaluating EMS provider financial health and the financing risks that flow downstream to your supply chain. 8 pages.

Covers inventory analysis including what high inventories and low inventory turns actually indicate, receivables and earnings evaluation including how to identify extraordinary losses and out-of-balance growth, key financial ratios with industry-specific benchmarks for contract electronics manufacturing, and an assessment of banking exposure covering credit facility adequacy, capital investment constraints, and provider vulnerability to credit tightening.

Includes a financial evaluation checklist, specific questions for provider discussions, and a fillable scorecard for structuring the assessment.