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Based on the information, Pacific National Bank¡¦s computarized analysis system generates a negative report on SPC because:
ľ Gross Profit is drastically decreasing
ľ Total Operating expenses and Total Interest are substantially increasing
ľ Reports reveals a number of adverse trends in key financial ratios, including ROE and ROA
Despite of the fact that SPC¡¦s Altman¡¦s Z score is above the standard requirement of 3, set by the bank, if I were working for the bank, I would not recommend to increase the line of credit.
Approximate Word count = 787 Approximate Pages = 3.1 (250 words per page double spaced)
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