| | Year 2022_ | Year 2021 | Year 2020_ | Industry Avg | Trend Analysis |
| Net Profit Margin | 15.31% | 6.04% | -4.40% | | |
| Return on Assets | 16.06% | 6.23% | -4.59% | | |
| Return on Equity | 39.46% | 21.05% | -14.02% | | |
| Average Days Payable | 93.48 | 110.07 | 95.05 | | |
| Debt to Assets | 59.30% | 70.40% | 67.30% | | |
| Debt to Equity | 1.46 | 2.38 | 2.06 | | |
| Accounts receivable DSO | 56.35 | 59.83 | 77.09 | | |
| Inventory Turnover | 4.41 | 4.15 | 4.67 | | |
| Working Capital | 702532.00 | 883104.00 | 804294.00 | | |
| Quick Ratio | 1.74 | 1.73 | 1.62 | | |
| Current Ratio | 2.08 | 2.04 | 1.92 | | |
Today is Jan 1st 2023. You are the commercial lender for NAIT Bank. Your Iongtime client Saxenda Inc Industries is a Iongstanding client of 20 years. Saxenda Inc is an incorporated company with their President on owner being Marvin O'Brien and has been in business for the last 24 years. Saxenda Inc develops gas-fitting devices for the Oil field industry. The company is in Ardrossan just east of Edmonton. They offer their customer 60 Days to settle accounts. Saxenda Inc is looking to secure $600,000 in additional capital as they are looking to expand their current premises to accommodate a new client that they have recently secured. These funds would be used to buy a new machine with the most current level of technology to make the required fittings the client is seeking. They are expecting with this one new account to provide an increase of sales of 30% over the next 3 years. Marvin asked his new CFO Bill, to send you the financial statements that you requested. Bill sent over the un-audited financial statements to you. The audited financials are still with the accountant and will be available in a week or so, but Marvin is pushing to get this loan in place to buy the equipment. Your assistant has collected the industry ratios for you. Bill the CFO has noted that sales have increased in the last three years due to Saxenda Inc's more aggressive selling approach. Marvin is a good client, is eager, and wants to know your response quickly to their request of $600,000. Of course, you must do a complete analysis noting any ratios that are cause for concern or required further explanation. \begin{tabular}{|c|c|} \hline Ratios & Industry Standard \\ \hline Net Profit Margin & 7.15% \\ \hline Return on Assets & 10.55% \\ \hline Return on Equity & 16.6% \\ \hline AVG Days Payble & 37 Days \\ \hline Inventory Turnover & 5.9 \\ \hline Accounts Receivables DSO & 38.5 Days \\ \hline Current Ratio & 3X \\ \hline Quick Test Ratio & 2.04X \\ \hline Debt to Assets & 106.5% \\ \hline Debt to Equity & 56% \\ \hline \end{tabular} Today is Jan 1st 2023. You are the commercial lender for NAIT Bank. Your Iongtime client Saxenda Inc Industries is a Iongstanding client of 20 years. Saxenda Inc is an incorporated company with their President on owner being Marvin O'Brien and has been in business for the last 24 years. Saxenda Inc develops gas-fitting devices for the Oil field industry. The company is in Ardrossan just east of Edmonton. They offer their customer 60 Days to settle accounts. Saxenda Inc is looking to secure $600,000 in additional capital as they are looking to expand their current premises to accommodate a new client that they have recently secured. These funds would be used to buy a new machine with the most current level of technology to make the required fittings the client is seeking. They are expecting with this one new account to provide an increase of sales of 30% over the next 3 years. Marvin asked his new CFO Bill, to send you the financial statements that you requested. Bill sent over the un-audited financial statements to you. The audited financials are still with the accountant and will be available in a week or so, but Marvin is pushing to get this loan in place to buy the equipment. Your assistant has collected the industry ratios for you. Bill the CFO has noted that sales have increased in the last three years due to Saxenda Inc's more aggressive selling approach. Marvin is a good client, is eager, and wants to know your response quickly to their request of $600,000. Of course, you must do a complete analysis noting any ratios that are cause for concern or required further explanation. \begin{tabular}{|c|c|} \hline Ratios & Industry Standard \\ \hline Net Profit Margin & 7.15% \\ \hline Return on Assets & 10.55% \\ \hline Return on Equity & 16.6% \\ \hline AVG Days Payble & 37 Days \\ \hline Inventory Turnover & 5.9 \\ \hline Accounts Receivables DSO & 38.5 Days \\ \hline Current Ratio & 3X \\ \hline Quick Test Ratio & 2.04X \\ \hline Debt to Assets & 106.5% \\ \hline Debt to Equity & 56% \\ \hline \end{tabular}
