A Study of Loan Decision with Financial Ration Analysis in Financial Institutions: Case Study of Representative Company

• Main Authors: Chih-Kuan Liu, 劉志寬
• Other Authors: Tyrone T. Lin
• Format: Others
• Language: zh-TW
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/69417966099403528238

碩士 === 銘傳大學 === 管理學院高階經理碩士學程 === 91 === This thesis aims to determine that how to diagnose enterprise’s financial report for reducing the risks of lending by establishing corporate performance. Lending institutions usually take more than thirty financial ratios to evaluate financial health of a corporation. Twenty-four financial ratios are operated as a representative lending institution and combines with six new financial ratios into this thesis to assess actual financial performance. For evaluating which of these financial ratios are main factors, this thesis studies several companies that had been occurred in financial crisis, to take one, two, and three year in the company’s financial history data are considered. Hereafter, to apply various financial ratios and to assess these financial ratios so as to judge the key financial ratios can predict the impending financial crisis. The results of this analysis in risk evaluation and management are shown as follows: previous year of crisis occured in predictor factors are significance in Total Debt to Equity Capital Ratio, Bank’s Loan to Equity Capital Ratio, Financial Leverage, Cash Flow From Operating Activities / Net Income — Current Year; previous two year predictors of crisis occurred are significance in Financial Leverage, Cash Flow From Operating Activities / Net Income — Current Year; Previous three year predictor of crisis occurred is significance in Cash Flow From Operating Activities / Net Income — Current Year.