英语论文网

As the conclusion, Shane Long's Jitterbug Pty Ltd has achieved the requirement of the Fitzroy bank. So the Fitzroy bank approves the loan that he requested. As a loan evaluation officer, I am approving the loan for Shane Long's Jitterbug Pty Ltd. Based on the analysis, the profitability of the company is very good because the company is earn money every year and the business can go well. About the liquidity, the current ratio and quick ratio shows that the Shane's company has enough liquid for operate the business in the future. No matter expenses or debts, Shane also has enough money to pay for it. Lastly, the financial stability of Jitterbug Pty Ltd has a better rate in debts ratio and equity ratio. Equity ratio is more than debt ratio so can make the company is very stable to continue operate the business and go well. The decision of Fitzroy Bank is decide to make a loan for Jitterbug Pty Ltd.

As my own recommendation, I will agree that the Fitzroy Bank should approve the loan for Jitterbug Pty Ltd. It is because we can see that Jitterbug Pty Ltd is doing well in his business from the financial statement. I believe Shane's company will expand his business better and better after upgrade his club. Based on the analysis of the financial statement, the company may get the loan from the bank. It is because the company has enough liquid and the profit they earn is increasing from year 2008 to year 2010. The performance of the company will help Shane to get the loan.

Appendix - Part B

Although the financial statement analysis is very useful for us to make a decision, but it will also have some disadvantages of the financial statement analysis. Firstly, financial statement analysis is generally an outdated post-mortem of what has already happened because of historical cost basis for the purpose of forecasting future performance. In the other words, all the measurement is using historical cost basis to analysis. They do not think about the some figure will change during inflation or deflation and will providing a misleading information to us. One of the disadvantages by using financial statement analysis is prices. The prices will be changes again and again during inflation or deflation. If the company the last record, they will not be accurate in the analysis. It is because the purchasing power will be different during inflation and will cause the amount not accurate and not reliable.

Financial analysis is useful, but analysis should be aware of this problem and can go to other analysis to make the analysis more accurate and easy to make a decision. First of the way is to use SWOT analysis which can be reviewing business and determine the how is the business going in the future. SWOT analysis is involved in an analysis of strengths, weaknesses, opportunities and threats. We cannot only depend on the financial statement analysis; we can use this marketing SWOT analysis to help us to get more information of the company. For example, Strength and weakness is to observe the internal of the company. However, Opportunities and threats is external factor to business. Not only that, market research is to collect and analysis the information 本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。