Description
- Write a 1-2 page executive summary, along with an appendix of supporting information, in which you analyze an organization's financial performance as well as their level of risk for lending and make and present a recommendation to help leadership make a loan decision.
Introduction
This portfolio work project will help you complete a thorough review of an organization’s financial performance as well as their level of risk for lending. Your recommendation will help leadership create a loan portfolio, and your executive summary will clearly and concisely communicate your review to others in the organization.Scenario
You work for an organization that provides loans to businesses. You are working with a client who is requesting a loan that will require a review of financial and related performance documents. You have been asked to review the documents and summarize your findings in a loan recommendation for your management team.Your Role
You are a loan manager for a lending organization, and your responsibilities include reviewing loan requests and providing recommendations in regard to whether the loan requests should be funded.Requirements
Your client works for Ace Company. Assume Ace Company requested a $3 million 10-year loan to purchase production equipment and develop accompanying software. Use the Ace Company Data document for this option. Loan Recommendation
To arrive at your recommendation, analyze the financial performance of the requesting company and present it to your organization’s upper-management team. The management team will take your recommendation into consideration as they finalize loan requests.Analyze the company's performance and performance trends. Include the following in your analysis:- Analyze the trend for accounts receivable collections.
- Identify the trend.
- Explain the relevance of the trend.
- Determine if the trend is improving or getting worse.
- Compare the company's average inventory turnover to the industry average inventory turnover rate. Note that the average industry turnover rate for Ace Company is 10 times per year.
- Consider whether the company’s average inventory turnover is higher or lower than the industry average.
- Explain whether a higher or lower average is better.
- Determine whether the trend is improving or getting worse.
- Evaluate the company's short-term and long-term credit worthiness based on financial performance and trend (comparing this year to last year). Include in your evaluation:
- Information about performance and trends.
- Information about other relevant financial information you consider important to the decision.
- Your recommendation regarding whether the bank should grant the loan based on the financial data.
Deliverable Format
The management team of your organization requests this information in the form of a 1–2 page executive summary along with a title page, references page, and appendix of supporting information. The executive summary must highlight the key findings from your review and will provide your recommendation and rationale. The appendix must include data used in your analysis for others to review. Assume that this document is the only communication in regard to your analysis and recommendation and that you will not be with the team to explain anything as it deliberates. In other words, the documentation you provide must be well organized and include information for the management team to clearly see your recommendation and rationale.Related company report standards:
- The executive summary is a professional document and should therefore follow the corresponding MBA Academic and Professional Document Guidelines, including single-spaced paragraphs.
- In addition to the executive summary, include:
- A title page.
- A references page.
- Appendix with supporting materials. If you are using a firm or scenario of your choosing, ensure faculty has sufficient information to understand how you reached your recommendation.
- At least two APA-formatted references.
Evaluation
By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies through corresponding scoring guide criteria:- Competency 1: Explain how accounting concepts and practices impact financial reporting.
- Analyze the trend for the company’s accounts receivable collections.
- Compare the company’s average inventory turnover ratio to an industry average.
- Competency 2: Apply principles of accounting to assess financial performance.
- Evaluate the company’s short-term and long-term credit worthiness.
- Competency 4: Communicate financial information with multiple stakeholders.
- Communicate accounting information clearly.
- Analyze the trend for accounts receivable collections.
Explanation & Answer
Attached.
OUTLINE
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Analyze the problem
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Analyzing Barriers to the HR interview process
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Proposing a solution
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Implementing the solution
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Implementing the best metric
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Evaluation of the result
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How the metric improved the outcome
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Reference
Running head: PERFORMANCE EVALUATION
Evaluation of ACE Company
Student Name
Institutional Affiliation
Instructor
Course Title
Date
1
PERFORMANCE EVALUATION
2
Executive Summary of Ace Construction
Company Mission
The company aspires to be a leader and trust provider in serves provision in the business
field. Not only a leader in the business segment but provide a competence-base unique, diverse
service as a source of competitive advantage. The company has a high commitment to value
development and fiscal discipline. Besides, the company has strong institutional support that
creates efficiency, sustainability, safety, and builds an influential business culture (Field et al.,
2010).
Company Management System
The ACE Company has developed structural reforms in the area is dissolution laws,
capital sourcing strategies, and better asset management to help the company develop a robust
competitive growth strategy. The company growth focuses on developing as a result of the
government policy that mainly aims to improve and expand the development of infrastructures in
the country through a larger share of budget allocation.
Services Offered
ACE Company provides construction services, and the company is promising soon to
expand its business industry growth to more than double in the long run. It, therefore, achieve
this through recent reinforcement of product segments by improved customer engagement and
new technology innovation. It calls for additional funds for empowering innovation and
invention spectrum for better decision-making to capture opportunities (Field et al., 2010).
Competitive Advantage
The company revenue and profits from previous years have shown a steady upward trend
in growth. That has strengthened the company making it the number one crane ...
