Which ratios would a banker be most interested, Financial Management

Assignment Help:

Which ratios would a banker be most interested in when considering whether to approve an application for a short-term business loan? Explain.

Bankers and other lenders use liquidity ratios to see whether to expand short-term credit to a firm.  Liquidity ratios calculate the capability of a firm to meet its short-term obligations.  These ratios are significant because not a success to pay such obligations can lead to bankruptcy.  In general, the elevated the liquidity ratio, the more capable a firm is to pay its short-term obligations.

 


Related Discussions:- Which ratios would a banker be most interested

When they analyze pro forma financial statements, What do financial manager...

What do financial managers look for when they analyze pro forma financial statements? After the pro forma financial statements are finished, financial managers examine the

Explain the term- maturities, Explain the term- Maturities Debentures a...

Explain the term- Maturities Debentures are sometimes grouped by length of time till maturity that existed on the date debenture was first issued.  Money Market Securities matu

Pass-through vs. pay-through structures, In a pass-through structure,...

In a pass-through structure, each certificate holder will be allotted a proportion of the cash flow from the underlying pool of loans or receivables on a pro rat

What are the characteristics of the financing decision, What are the Charac...

What are the Characteristics of the financing decision There are two characteristics of the financing decision. First, theory of capital structure which illustrates theore

What are the coupon bonds security instruments, What are the coupon bonds s...

What are the coupon bonds security instruments? Coupon bonds are contractual agreements by the borrowers to make regular payments (known as coupons or interest) until a specifi

What do disclaimer of opinion, Disclaimer of Opinion - Statement by an AUDI...

Disclaimer of Opinion - Statement by an AUDITOR indicating inability to express an opinion on the fairness of FINANCIAL STATEMENTS provided and reason for the inability. The audito

Define the basic motivations for a counterparty, Define the basic motivatio...

Define the basic motivations for a counterparty to enter into a currency swap.  Answer:  One major reason for a counterparty to enter into a currency swap is to exploit the comp

Chi square distribution, Chi Square Distribution If the difference betw...

Chi Square Distribution If the difference between actual and the expected frequencies is zero, the sampling distribution of the chi square statistic c 2  will be identical to a

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd