What ratios will the bank observe to evaluate this company’s ability to repay the loan and interest
when a company wants to apply a ten-year loan from a bank, what will the bank evaluate in the company’s financial statement? What ratios will the bank observe to evaluate this company’s ability to repay the loan and interest. And if the revenue and other ratios overall declined from 2013 to 2014 but increased from 2014 to 2015? Will the loan application be accepted?
NOTE: SHOW how the bank judge the ability of an entity to repay the loan. Because my assignment is about calculating the ratios based on the annual reports in recent three years. .
Answer preview to what ratios will the bank observe to evaluate this company’s ability to repay the loan and interest
APA
462 Words
