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Credit Management - K32: Andaman, Greg Audic, Oceane Pham, Adrien Velayo, Raezel Louise

The document summarizes a credit assessment for a company. It finds that the company has acceptable debt capacity based on its debt ratio of 0.41. It has adequate cash flow to repay loans over the next 10 years. Additionally, the company has good financial conditions with ratios showing healthy performance despite a beverage scandal reducing income. The recommendation is to approve a loan to purchase new equipment for mill expansion projects.

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Raezel Louise Velayo
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42 views

Credit Management - K32: Andaman, Greg Audic, Oceane Pham, Adrien Velayo, Raezel Louise

The document summarizes a credit assessment for a company. It finds that the company has acceptable debt capacity based on its debt ratio of 0.41. It has adequate cash flow to repay loans over the next 10 years. Additionally, the company has good financial conditions with ratios showing healthy performance despite a beverage scandal reducing income. The recommendation is to approve a loan to purchase new equipment for mill expansion projects.

Uploaded by

Raezel Louise Velayo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Credit Management - K32

Group 1
Andaman, Greg
Audic, Oceane
Pham, Adrien
Velayo, Raezel Louise
Capacity
Considering that the
debt ratio is 0,41, the
capacity is acceptable, Character
regarding the
background and the
overall financial health Beverage scandal in
of the company Vietnam
One of the main
consequences is the drop
in the net income by
21,2% in the first 9
months of 2017
Capital
Capacity
The company has an
Considering that the adequate amount of
debt ratio is 0,41, the cash enabling them
capacity is acceptable, Character to repay the loan
regarding the according to its
background and the terms for the next 10
overall financial health Beverage scandal in
Vietnam years.
of the company
One of the main
consequences is the drop
in the net income by
21,2% in the first 9
months of 2017
Capital
Capacity
The company has an
Considering that the adequate amount of
debt ratio is 0,41, the cash enabling them
capacity is acceptable, Character to repay the loan
regarding the according to its
background and the terms for the next 10
overall financial health Beverage scandal in
Vietnam years.
of the company
One of the main
consequences is the drop
in the net income by
21,2% in the first 9
Condition months of 2017

Good financial conditions, with ratios that


shows a healthy environment:
ROE = 13%
GPM : 30,94 (higher than the industry average
between 26,3 and 28,8)
Net income growth: 13.32%
Net margin: 8,71%
Capital
Capacity
The company has an
Considering that the adequate amount of
debt ratio is 0,41, the cash enabling them
capacity is acceptable, Character to repay the loan
regarding the according to its
background and the terms for the next 10
overall financial health Beverage scandal in
Vietnam years.
of the company
One of the main
consequences is the drop
in the net income by
21,2% in the first 9
Collateral
Condition months of 2017
For this loan package, no collateral is
needed as in their previous long-
Good financial conditions, with ratios that term loans.
shows a healthy environment: Instead, aforementioned loans are
ROE = 13% only guaranteed by the Parent
GPM : 30,94 (higher than the industry average Company. The company made no
between 26,3 and 28,8) single default in the payment of
Net income growth: 13.32% their loans.
Net margin: 8,71%
Character

Beverage scandal in
Vietnam
One of the main
consequences is the drop
in the net income by
21,2% in the first 9
months of 2017
Risk Analysis
and Assessment

- The company has a low risk of loan default

- Historically, no loan default from local or foreign debts has been recorded

- Good credit rating through the years


Recommendation

- Purchase of new equipment for their new mills across the country

- Support the rise in domestic and international demand

- an essential part in the expansion projects since machineries and equipment play a crucial
role in their line of business.

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