贷款审核分析模板(英文版).doc

The loan review of Yili group
A company want to develop well,it must have adequate capital to support its operations activities and investment.But the capital of a company is limited,they usually need to get the loan from banks or other one who want to invest and have a lot of money,but the lenders must estimate the company roundly and carefully,because there is risks that lenders maybe lost their money.
Now, Inner Mongolia Yili Industrial Group want to get loan from bank,the bank will estimate it and then,decide that whether loan to it.
Part 1.introduction of target enterprise.
Inner Mongolia Yili Industrial Group(we simply call it as Yili group) is the first place company in dairy market of our county,its primary business is to make dairy.even tnough the competition is more and more fierce at present,it also takes up a large of market.its advantages are nonnegligible.
The president situation：
From 2010 to 2013,the sales and profit from principal operations of Yili group increase continually. Generally speaking, Net cash flow from operations and total assets increase.Net cash flow from investing activities is negative number and decrease, total liabilities also increase.Net cash flow from financing activities increase, stockholders’ equity also increase.In words,the assets increased gradually,capital accumulated continually,Yili group has a positive financial situation.
Guarantee condition:
Pulishment and bad records:Yili group desn’t have any bad records,so we can think it has a good reputation.
Part 2.financial statement analysis
If we want to estimate a company,their financial statement is necessary.there are much information about the point which the lenders pay more attention to,that is the financial condition.Especially,the ratio analysis is very important,so,we select 6 ratios(3 from the balance sheet and 3 from the cash flow statement) to analysis.
Ratios from balance sheet:
1. leverage ratio:
leverage ratio= total liabilities/total assets
It reflects how much of the total assets was come from borrow money. The ratio is a comprehensive index of the evaluation of corporate debt level. Standing in the position of creditors, they hope the leverage ratio will be low, because it means loan will not have too much risk. Operators hope the debt asset ratio be higher, they expand the scale of production and open market by loan. Usually we expect the ratio control in 40%~60%.
The chart indicated the leverage ratio of Yili group from 2010 to 2013.

2. Turnover of accounts receivable:
Turnover of accounts receivable= net sales revenue/the average accounts receivable.
It is a ratio deserving great concern in credit grading in enterprises. It reflect how long the accounts receivable will take to become cash. In general turnover of accounts receivable is good to be high, it means the speed is fast to get cash from accounts receivable. But if the average collection period is too short then it means the company hold a tight credit policy which is not good for expand sales .
The average accounts receivable.=( accounts receivable at the beginning of the year+ accounts receivable in the end of the year)/2
The chart indicated the turnover of accounts receivable of Yili group from 2010 to 2013.

3. Turnover of total assets:
Turnover of total assets= sales revenue / total assets
Turnover of total assets reflects the transfer speed of all assets from input to output. Reflects the company’s management quality and use efficiency .In general the calculation results is better to be high, it means the operation ability is strong. Enterprise can increase the total assets through selling a lot of products cheaply .
The chart indicated turnover of total assets of Yili group from 2010 to 2013.

Ratios from cash flow statement:
1. The long-term debt solvency ratio
The long-term debt solvency ratio= Net cash flow from operations / Total liabilities.
This ratio is used to measure the ability of companies to repay the total debt of companies with annual cash flows, it can measure the companies’ long-term solvency.
2. Net sales ratio:
Net sales ratio= Net cash flow from operations / Sales
This ratio reflects the relationship between the net sales ratio of net cash flow and sales revenue generated from operating activities and it also reflects the return of the current situation the main business funds. Theoretically, generally , it is perfect that the ratio equal to 1.
3. Net profit and cash ratio
Net profit and cash ratio= Net cash flow from operations/ Net profit
It reflects the ability of companies to create free cash flow. If the ratio is high,it stands for the good quality of companies’ earnings and the cash is sufficient.if the ratio is low ,it stands for the poor quality of companies’ earnings.
The chart indicated the long-term debt solvency ratio, net sales ratio and net profit and cash ratio of Yili group from 2010 to 2013.

Part 3.conclusion
From the charts above,we can see that the trend of every ratios.Leverage ratio decrease,but assets increase,it indicated that liabilities decrease,so the repayment pressure wii be relieved. Turnover of accounts receivable increase,it shows that the accounts receivable of Yili group are colleted gradually.this indicated that the capital is more and more adequate.But the turnover of total assets has a sharp fall from 2012 to 2013,meanwhile, Net profit and cash ratio fluctuate wildly ,maybe the operation ability of it should be improved.But the long-term debt solvency ratio increase,it shows that financial condition is optimistic.
In conclusion,even though there is little risk to give a loan to Yili group,it also can give the bank more benefits. Through the evaluation of Yili Group,we think the bank can allow to give loan to it.