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

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.