Case 1 . Springfield National Bank
Dawson Stores, Incorporation. is in need of a US $ 1 mil credit line via Springfield National Bank by using an unsecured basis. This research was done to determine if Dawson Retailers Inc. is a good credit risk for the bank by taking into account the company? s i9000 financial condition, figure reference and loan security. Financial rate and tendency analyses show the company? h increasing earnings and long lasting stability.
It is recommended that the lender approves the credit line that Dawson Stores, Inc. is definitely requesting, while the company knows how to maximize its assets and has shown enhancing profitability as time passes. The long- standing and untainted relationship of the Dawson Stores Inc. and the financial institution is another element that facilitates this recommendation.
Dawson Stores Inc, displayed by Mister. John Dawson Jr., wants to apply for a $1M credit line with an unsecured basis for their short-term needs. The company has been a client of the financial institution for a long time, nevertheless it has certainly not availed of financial institution credit in the last ten years. To aid the company? s application, they submitted their financial transactions for the last four years.
This report should determine if Dawson Stores Incorporation. will be a great credit exposure to possible Springfield National Bank.
Structure for Evaluation
Considerations to get extending the credit line requested are Dawson Stores Incorporation.? s certainly are a loan would be financial condition, character reference and loan assets.
The company? s profitability, liquidity, and solvency were dependant upon the trend analysis of the financial ratios.
Figure Reference and Collateral
The business? s background its marriage with the traditional bank were considered.
Financial statement ratio analysis was conducted based upon the information given. Results are the following:
Table 1 ) Profitability Proportions