Financial statement spreading is the process of transferring a borrower’s financial data—such as income statements, balance sheets, and cash flow statements—into a standardized format for analysis. This technique is widely used by banks and lenders to evaluate the financial health and risk profile of individuals or businesses seeking credit. By spreading financials consistently, analysts can calculate key financial ratios, identify trends, and make data-driven lending decisions. Financial statement spreading improves accuracy, speeds up underwriting, and ensures regulatory compliance. Whether done manually or using advanced software, this practice plays a critical role in commercial lending and credit risk assessment by providing a clear, comparable view of a borrower's financial performance over time.