StudentShare solutions
Triangle menu

Southwest trading company-finance - Case Study Example

Nobody downloaded yet

Extract of sample
Southwest trading company-finance

It is the work of financial experts to analyses this information and establishes the negative side of the information. It is important to understand this side of things because, from there is when financial institutions can decide whether their money is safe or not. On an outward view of proposals, it would be very difficult for financial experts to identify unscrupulous borrowers, which prompt for a deeper look into their financial history. A comprehensive credit analysis by a loan officer should begin with an analysis of prior bank relationships, customers, suppliers, and dealings (Koch and MacDonald 603). All this information can be analyzed using a basic four stages process that checks the overview of firm, size and financial ratios, its cash flow, and finally the borrowers projected financial position. The following analysis is carried out on Southwest trading company’s credit worthiness following the four-part process. Analysis Overview of management, operations, and the firm’s industry An overview of the Mahan’s Southwest trading company reveals three things. ...
Furniture and jewelry are luxury goods, and most of them sell during high season. This comes around in summer when there is an influx of tourist and it is portrayed as a time people have more disposable money. Following Steven’s extensive contact base in Dallas and Houston, there is a high possibility of the business being a lucrative especially factoring in the fact that he has already received order prior to opening. Working as both a supplier and a retailer also shows an extended risk. However, it is worth indulging into following the high demand of Jewelry and furniture in Texas where the company will be supplying. The third issue is the quality of data presented by Steve. The data shows a positive trend and the business seem lucrative enough. Steve is a holder of an economics degree, an MBA and has had several years of work experience. His projections can appear substantial enough and following their lump sum investment in the business then the quality of data can be regard as significant and worth consideration. Common size and financial ratio analysis A review of Southwest Trading Company’s financial projection statements reveals a number of salient factors. Starting with the income statement it shows a very positive trend I the company’s financial performance for the following five years. Sales are increasing in the first three years after which they stabilize and become consistent. In terms of expenses, the projections are under estimated because considering the business will be involved with exportation to Houston, Texas and Dallas. Delays, transportation costs, warehousing and currency difference ought to be incorporated in costs section of the financial statement. ...Show more


Southwest trading company-finance case Institution Name Date Introduction Credit analysis is a decisive factor when it comes to financing. Through credit analysis, a bank eliminates all the possible and meaningful circumstances that may lead to a loss. The process is also significant because financial institutions can use it to reconstruct an untenable loan application into a strong one when all other factors indicate the borrower is strong (Koch and MacDonald 599)…
Author : jasonbeier
Southwest trading company-finance case essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the case study on your topic
"Southwest trading company-finance case"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Southwest Airlines Case Study
airline industry has led to affect the business of Southeast airline. The major areas of concern for Southwest airline was decreasing profit and market share. During 1989, Southwest Airline was one of the leading airline services providers but the new entrants like United Airlines, Northwest Airline, and American Airline etc became vital threats to Southwest Airline.
3 pages (750 words) Case Study
Southwest airlines company
Financial Performance 7 3.1 Liquidity ratio 9 3.2 Solvency Ratio 10 3.3 Profitability Ratio 11 3.4 Efficiency ratio 13 3.5 Comparison with Competitors 14 4. Key Performance Indicators 15 Advancement of security and culture of Southwest 15 Value the employees 16 Make a place in the minds and hearts of the customers 16 Use Resources Sensibly 16 5.
18 pages (4500 words) Case Study
Case study-Southwest Airlines
The success of the airline can be attributed to its organizational strategy and structure resulting in maximum organizational commitment from its employees. It is a lucid fact that only a satisfied employee can have organizational commitment. 'Organizational commitment' is an attitude of an individual with a strong desire to remain a member of a particular organization with willingness to exert high levels of effort on behalf of the organization, accepting the values and goals of the organization.
5 pages (1250 words) Case Study
SouthWest Airlines Case Analysis
Southwest currently operates only Boeing 737. Today, the company's operating fleet was composed of 537 Boeing 737 aircraft, each having 189 seats, with an average age of approximately 10.5 years. The average aircraft trip length is 639 miles with an average duration of one hour and 54 minutes.
13 pages (3250 words) Case Study
Helens Trading Card Company
The question is what really is an Information System Why is it necessary What will it achieve What stages of a Systems Development Methodology are involved in designing it Answers to such and other questions, in the context of Helen's Trading Card Company, will be discussed in this paper.
12 pages (3000 words) Case Study
Case 27 Southwest Airlines: Does LUV Last
He involved Herb Kelleher in his business and together they put together their efforts and money to start the business. In the beginning, Lamar Muse, an airline veteran, was brought in as CEO and later, Howard Putnam (1978-82) took charge. Herb Kelleher took over as CEO in 1982. Colleen Barrett has been the president and COO since 2001 and James F. Parker is the CEO. Gary C. Kelly replaced Parker in 2004.
3 pages (750 words) Case Study
Southwest Airlines Case Study
Some actions required for Southwest Airline during that period were decreasing income, market share, intensifying competition, and degrading operational
3 pages (750 words) Case Study
World Paper Company - Finance Case 18
wide Paper Company (WPC) is planning to introduce a long wood woodyard to reduce the costs spent on the short wood, and to increase its competitive strength in the paper industry. The yearly cash flows that are relevant to this company include the initial outlay, the annual
3 pages (750 words) Case Study
Southwest Airlines Case
Another factor was the strategy to ensure its fleet was fully utilized by ensuring no plane was grounded for more than 10 minutes in
2 pages (500 words) Case Study
Southwest trading company-finance case
The whole process of credit analysis brings out all the information necessary to determine the borrower’s credit worthiness. This is in terms of ability and
4 pages (1000 words) Case Study
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
Comments (0)
Click to create a comment
Contact Us