Home > Ace Company Case- Ace Company’s performance and performance trend
Ace Company Case- Ace Company’s performance and performance trend
You work for an organization that provides Loans to businesses. You are working with a client who us requesting for a loan that will require a review of financial and related performance documents. You have been asked to review the documents and summarize your findings in a loan recommendation for your management team. You may apply this scenario to either option 1 or Option 2, described in requirements below.
Your Role.
You are a loan manager for a lending organization and your responsibilities include reviewing loan requests and providing recommendations in regard to whether the loan requests should be funded.
Requirements:
Option 1:
Your client works for Ace Company. Assume Ace Company requested a $3 million 10-year loan to purchase production equipment and develop accompanying software. Use the Ace Company Data document for this option.
Option 2:
Use a firm or scenario of your Choosing.
Before choosing a company, read the assessment thoroughly to ensure:
- The company fits the assessment requirements
- You have access to the financial statements and related performance documents needed to assess risk and make a loan recommendation. You will need information for this year and last year.
- You can distribute the financial statements and related performance documents without disclosing confidential company information.
Loan Recommendation
To arrive at your recommendation, analyze the financial performance of the requesting company and present it to your organization upper-management team. The management team will take your recommendation into consideration as they finalize loan requests.
Analyze the company’s performance and performance trends. Include the following in your analysis:
- Analyze the trend for accounts receivable collections.
- Identify the trend
- Explain the relevance of the trend.
- Determine if the trend is improving or getting worse.
- Compare the company’s average inventory turnover to the industry average inventory turnover rate. Note that the average industry turnover rate for Ace Company is 10 times per year.
