Balance Sheet Optimization involves strategically managing a company's assets, liabilities, and equity to enhance financial performance, reduce risk, and improve liquidity. It requires a comprehensive analysis of financial ratios, capital structure, and asset utilization to ensure the organization is well-positioned for growth and stability.
Financial distress occurs when a company or individual cannot generate sufficient revenue or income, making it difficult to meet or pay their financial obligations. This situation often leads to a decline in creditworthiness and can result in restructuring, asset liquidation, or bankruptcy if not managed effectively.