Posted: November 14th, 2015

Analyze Bodies using Ratios and the 4 C’s of Credit Model

write a Case Study.
Using the results from Tasks 1 and 2, prepare a report that summarizes the following:

For each category on the ratio worksheet (i.e., Profitability, Liquidity, Efficiency, Stability, Growth, DuPont Model and Sustainable Growth) comment on whether the trend is improving/worsening compared to both 2001 and industry averages (if given) and why the change is occurring (linking back to facts from the Bodie case). One or two sentences are appropriate, provided they are concise and only discuss to relevant points.

Analyse Bodie using the 4 C’s of Credit model given in the notes (i.e., Character, Conditions, Capacity to Repay and Collateral). Your analysis can be in point form and can follow the format of Table 6.1 and 6.2 in Section 6.2. For Collateral, assume Bodie is bankrupt at the end of 2006, before the new addition is added. Assume 75% of Accounts Receivable will be collected and the Net Fixed Assets will be sold for 70% of their 2006 value. For the other asset accounts, use your knowledge of financial statements and any other information given in the Bodie case.