As a bank loan officer you are about to review a local compa

As a bank loan officer you are about to review a local company\'s financial statements as part of the loan approval process. What items in the financial statements would you like to give some extra attention to?

Solution

While giving loan officer need to look in statements company\'s debt and equity.Debt to Equity ratio may be considered for this.

2.profit of the company - Turnover and profit earned is the second factor which plays great role in distribution of loan.

3.Total Assets vs. Total Liabilities-This also provide sound knowledge about company financial position.

4.Inventory vs. Sales- Efficiently handling Inventory is also a good sign of company\'s performance as well as repayment of loan and interest is also secure by considering these factors.