southwest trading company-finance case

southwest trading company-finance case Case Study example
Masters
Case Study
Finance & Accounting
Pages 4 (1004 words)
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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)…

Introduction

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. ...
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