Accounting, Reporting & Tax
Financial Statement Analysis for Shipping Companies
Summary
Financial statement analysis translates income, assets, liabilities and cash-flow disclosures into shipping-specific measures of resilience.
Why this matters in ship finance
Book profits may conceal asset-value cycles, off-hire, dry-docking cash drains, leases and balloon repayments.
The concept
Interpret IFRS and local-GAAP accounts using a consistent policy basis, segment information, commitments, related parties, subsequent events and financing restrictions.
How it is used in practice
Reconcile EBITDA, time-charter equivalent, operating cash flow, net debt, debt service and vessel values, highlighting non-recurring items.
Practical issues
Non-GAAP shipping KPIs and market net asset value are not interchangeable with audited IFRS figures. Use clear definitions and reconciliations.
How ShipFinance.ai uses this concept
Build a borrower credit-scorecard with traceable financial and vessel-level inputs.
Key takeaways
- Use a consistent basis for cash, debt and operating earnings.
- Separate reported figures from alternative shipping KPIs.
- Reconcile fleet valuations and accounting asset values.