Butler Lumber Case Discussion Fathuddin Hamid Academia
4/1/2015
Butler Lumber Case Discussion | Fathuddin Hamid Academia.edu
Search...
Log In
Sign Up
Butler Lumber Case Discussion
1) Is Butler Lumber Case just a bank lending / finance case?
Butler Lumber Case is not just a bank lending / finance case. Though this case requires the financial analysis of the company, we should also consider other factors such as the establishing the long-term relationship between the bank and Butler Lumber Company.
Through
thiscross long-term relationship, the bank is ableCompany. to capitalize on Butler
Lumber’sfostering
growth and sell the services to Butler
Lumber
Additionally, the bank should consider other qualitative factors such as in this case,
Butler Lumber has just been incorporated and it is located in a growing suburb of a large city. This represents a growth potential in which the Northrup National Bank could cross sell products. Other qualitative factors may affect the main revenue drivers for the
Butler Lumber Company. For example, general economic slowdown may slowdown the rate of increase in sales but it may be protected to some extent from the fluctuations in new housing construction because of the relatively high proportion of its repair business. As such, Butler Lumber Case is not just a bank lending / finance case.
2) How does Butler Lumber Company make money?
The company operations were limited to the retail distribution of lumber products in the local area. These include Plywood, moldings, and sash and door products.
3) How is Butler Lumber Company doing financially? Is the business profitable? (You are required to provide all the financial trend analysis and historical financial ratios to support your answer.)
Butler Lumber Company is well in general financially. By looking at the sales and asset growth, the company is able to gain more in terms of sales especially since the company is run with few employees. With additional employees, it is able to improve its sales growth. Taking into account of
Butler Lumber Case Discussion | Fathuddin Hamid Academia.edu
Search...
Log In
Sign Up
Butler Lumber Case Discussion
1) Is Butler Lumber Case just a bank lending / finance case?
Butler Lumber Case is not just a bank lending / finance case. Though this case requires the financial analysis of the company, we should also consider other factors such as the establishing the long-term relationship between the bank and Butler Lumber Company.
Through
thiscross long-term relationship, the bank is ableCompany. to capitalize on Butler
Lumber’sfostering
growth and sell the services to Butler
Lumber
Additionally, the bank should consider other qualitative factors such as in this case,
Butler Lumber has just been incorporated and it is located in a growing suburb of a large city. This represents a growth potential in which the Northrup National Bank could cross sell products. Other qualitative factors may affect the main revenue drivers for the
Butler Lumber Company. For example, general economic slowdown may slowdown the rate of increase in sales but it may be protected to some extent from the fluctuations in new housing construction because of the relatively high proportion of its repair business. As such, Butler Lumber Case is not just a bank lending / finance case.
2) How does Butler Lumber Company make money?
The company operations were limited to the retail distribution of lumber products in the local area. These include Plywood, moldings, and sash and door products.
3) How is Butler Lumber Company doing financially? Is the business profitable? (You are required to provide all the financial trend analysis and historical financial ratios to support your answer.)
Butler Lumber Company is well in general financially. By looking at the sales and asset growth, the company is able to gain more in terms of sales especially since the company is run with few employees. With additional employees, it is able to improve its sales growth. Taking into account of