You are the commercial lender forNAITBank.Your longtime clientSaxenda IncIndustriesisa longstanding client of9 years. Saxenda Incis an incorporated company with their President on owner being Marvin O'Brien and has been in business for the last 13years.Saxenda Incdevelops gas-fitting devices for the Oil field industry.The companyis inArdrossan just east of Edmonton. They offer their customer 30 Days to settle accounts.

Saxenda Inc is looking to secure $450,000inadditional capital as they are looking to expand their current premises to accommodatea 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 40% over the next3 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 increasedin the lastthreeyears due toSaxenda Inc'smore aggressive selling approach.

Marvin is a good client, is eager,and wants to know your response quickly to their request of $450,000.Of course, you must do a complete analysis noting any ratios that are cause for concern or required further explanation.

*Copy these financials into your excel file where you will complete your case. Once you have calculated your ratios return to Mobius to input your ratios.*

SAXENDA INC CONSOLIDATED STATEMENTS OF OPERATIONS	2020	2019	2018
Net revenues	2,505,427	2,569,669	2,608,802
Costs and expenses
Cost of good sold	944,545	904,523	1,067,000
Royalties	317,640	144,955	426,202
Product development	180,000	255,000	225,000
Advertising	238,016	259,537	253,054
Amortization of intangibles	31,764	14,495	42,620
Program production cost amortization	34,882	34,094	25,026
Selling, distribution and administration	395,857	480,528	393,929
Depreciation	202,037	223,674	259,648
Total expenses	2,142,704	2,093,132	2,432,831
Operating profit	466,098	476,537	72,596
Non-operating (income) expense
Interest expense	$49,455	$58,359	$46,700
Interest income	-24,576	-14,141	-19,566
Other (income) expense, net	6,053	-30	3,294
Total non-operating expense, net	$30,932	$44,188	$30,428
Earnings before income taxes	435,166	432,349	42,168
Income taxes	106,180	90,360	10,288
Net earnings	$328,986	$341,989	$31,880
Per common share outstanding	148,433	144,785	135,206
Net earnings Per Share	$2.22	$2.36	$0.24
Basic	$2.21	$2.33	$0.23
Diluted	$1.43	$1.55	$0.2
Cash dividends declared	$0.33	$0.35	$0.04

SAXENDA INC BALANCE SHEET PERIOD ENDING DEC 25TH 2020 (Thousands of Dollars Except Share Data)
	2020	2019	2018
ASSETS
Current assets
Cash and cash equivalents	$630,165	$673,402	$889,371
Accounts receivable, less allowance for doubtfulaccounts of $32,508 in 2020, $19,281in 2019,
and$29,605 in 2018.	524,335	264,125	477,515
Inventories	218,874	228,433	262,633
Prepaid expenses and other current assets	190,011	211,776	253,679
Total current assets	$1,563,385	$1,377,736	$1,883,198
Property, plant and equipment, net	$204,442	$218,915	$238,757
Other assets
Goodwill	257,357	230,812	310,384
Other	380,026	552,050	552,130
Total other assets	841,825	1,001,777	1,101,271
Total assets	$2,405,210	$2,379,513	$2,984,469
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term borrowings	$331,918	$254,607	$399,918
Accounts payable	271,788	247,469	370,074
Notes Payable	156,338	142,770	199,959
Total current liabilities	$760,044	$644,846	$969,951
Long-term debt	$608,518	$654,366	$620,769
Other liabilities	194,822	233,192	292,477
Total liabilities	$1,563,384	$1,532,404	$1,883,197
Shareholders' equity
Preference stock of $2.50 par value. Authorized
5,000,000 shares; none issued	-	-	-
Common stock of $1.98 par value. Authorized and 2020300,000 shares; issued 148,433shares in 2020	293,897	286,674	267,707
Additional paid-in capital	-77,926	75,604	537,391
Retained earnings	697,788	417,785	126,471
Accumulated other comprehensive (loss) earnings	-71,932	67,045	169,702
Total shareholders' equity	841,826	847,109	1,101,272
Total liabilities and shareholders' equity	$2,405,210	$2,379,513	2,984,469

1. CALCULATE THE FOLLOWING RATIOS BE SURE TO SET YOUR BAIIPLUS TO TWO DECIMAL POINTS:

YOU ARE REQUIRED TO DETERMINE THE TREND OF HOW SAXENDA INCIS PERFORMING COMPARED TO THE INDUSTRY STANDARD.

NOTE-ONLY ENTER NUMERIC ANSWERS.

FOR EXAMPLE IF THE INDUSTRY RATIO IS IN PERCENTAGE ENTER YOUR ANSWER AS PERCENTAGE.IF THE INDUSTRY RATIO IS IN TIMES(X) ENTER YOUR ANSWER AS WHOLE NUMBER AND SAME FOR DAYS.

Ratios	Industry Standard		2020	2019	2018
Profit on Sales	4.05%
Gross Margin	39.5%
Return on Assets	7.25%
Return on Investment	17.8%
A/R Days of Sales Outstanding	18.4 Days
A/P Days Outstanding	21.8 Days
Inventory Turnover	4.6 X
Sales to Fixed Asset Ratio	9 X
Sales to Net Worth Ratio	2.1 X
Current Ratio	1.62 X
Acid Test Ratio	1.43 X
Debt to Net Worth	95%
Current Liabilities to Net Worth	51%
Fixed Assets to Net Worth	29%
Longterm Liabilities to Net Worth	109%
Sales to Working Captial	2.32 X
Fixed Assets to L/T Liabilities	28%