Financial Ratio Analysis: A Case Study from Milan Fashions Coat Company

Authors

  • Ronald Richter Department of Finance and Economics, Rutgers University, USA.
  • Arthur S. Guarino Department of Finance and Economics, Rutgers University, USA.

DOI:

https://doi.org/10.9734/bpi/aobmer/v5/6659B

Keywords:

Ratio analysis, current ratio, long-term debt-to-equity ratio, debt-to-equity ratio, total debt ratio, financial leverage ratio, inventory turnover, fixed asset turnover, debt-to-capital ratio, interest coverage ratio, return on assets

Abstract

Financial measurements have traditionally served as the cornerstone for measuring company performance.  This case study examines the debt status of a company as it strives to expand its manufacturing operations.  The company requires financial money to expand, but its business venture and financial status are regarded risky, therefore it must contact a commercial bank to obtain funds.   A bank lending officer must review the company's financial statements to determine whether a loan is feasible. The lending officer must evaluate significant portions of the firm's financial accounts, do ratio analysis, and then decide whether to extend the loan.

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Published

2023-11-11

How to Cite

Ronald Richter, & Arthur S. Guarino. (2023). Financial Ratio Analysis: A Case Study from Milan Fashions Coat Company. An Overview on Business, Management and Economics Research Vol. 5, 1–10. https://doi.org/10.9734/bpi/aobmer/v5/6659B

Issue

An Overview on Business, Management and Economics Research Vol. 5

Section

Chapters