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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.