Got a tricky question? Receive an answer from students like you! Try us!

southwest trading company-finance - Case Study Example

Only on StudentShare
Masters
Author : jasonbeier
Case Study
Finance & Accounting
Pages 4 (1004 words)

Summary

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)…

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. ...
Download paper
Not exactly what you need?

Related Essays

Finance and Accounting Essay: Case Study: Manchester Meerkat Company
In this case, a budget is a financial preparation that covers a specific period of business operations (Berry et. al. 2006). The budget usually shows different expectations of expenditure and revenues of a business. Under normal circumstances, a large organization creates departmental budgets while small organizations create a single budget for the whole firm. The comparison between the budget estimates and the end results of all business operations gives the management a variance. There are two main causes of variances in a business’s budget. One of the main causes is spending more than the…
10 pages (2510 words)
Response To Memo From K. Abbott-Gill, The Cfo Of Antipodes Mineral Resources Company
The core business in a mineral company is; mining and therefore most investments in such entities revolve around this central activity. The following are the areas I would expect AMR to make their investments: …
9 pages (2259 words)
The analysis by Steel Tube division of Engineering Products Plc accountant
Center of discussion in this paper is a financial analyst for Steel Tube division of Engineering Products Plc named Roger Davis. He is having a tough time convincing the management for a project proposal. The analysis by his accountant and the additional information obtained from other sources has added to his woes. Roger Davis needs to convince his managing director about the viability of a new proposal for computer numerically controlled (CNC) milling machine. The MD is not ready to spend money on the project unless it can start yielding profits within 3 years. However, the accountant’s…
7 pages (1757 words)
Finance and Accounting Case Study
On the other hand, other business majors such as marketing and management majors have a wider impact. Other business majors are not just responsible for the shareholders of the company but to all the stakeholders of the company and the society/community in which the company operates. Therefore, it would be wrong to say that one business major has a greater responsibility than another to behave ethically. They all are required to equally behave ethically under all circumstances. Case 4.5 – Wiley Jackson There are only 2 decision alternative available: one is to mention what had happened in…
3 pages (753 words)
Finance and Accounting Essay on Southwest Airlines
Both the Southwest Airlines and Federal Aviation Administration (FAA) were held responsible for this scandal. The safety reports were meant to comply with the safety regulations related to inspection of its jet aircrafts. FAA was responsible for assuring the facts that Southwest Airlines complied with all the required safety regulations related to the aircrafts flown by them. However, later it was discovered that Southwest Airlines flew around 48 jets without having done the required safety inspections for flying the aircrafts. Next when Southwest Airlines discovered this fact it mentioned…
10 pages (2510 words)
Finance (Case Study)
They should work out how much (after paying off all their debts and driving down their expenditure) they can save every month. Good saving habits and practices begin with a clear knowledge and understanding of what one is capable of and how much one can spend at any given time without negatively affecting his/her financial health. The couple must therefore know how much they are capable of saving every month, compare that figure to the actual amount they are saving and then start cutting down on unnecessary spending. Work out a Saving Plan Ascertaining saving is only the first step. It acts as…
7 pages (1757 words)
Investigation, research, analysis and real world case study(/ies) on the topic of Insider Trading
In this regard, the level up to which the aspects of insider trading along with other related activities are on the rise will be determined upon. In recent times, it is observed that amid the most talked about cases of insider trading the names of Raj Rajaratnam, Chief Executive Officer (CEO) of Galleon Group and Rajat Gupta, the ex MD of McKinsey and ex director of Goldman Sachs come into contention. In relation this particular aspect, proper literature backed up with problem identification and discussion will be presented throughout the overall process of the research. It has been determined…
11 pages (2761 words)