本文是金融專業(yè)的留學(xué)生Essay范例,題目是“Financial Analysis Of Hampton Machine Tool Company(漢普頓機(jī)床公司財(cái)務(wù)分析)”漢普頓機(jī)床公司,一個(gè)機(jī)床制造商,成立于1915年。直到1979年,公司已經(jīng)成功地預(yù)測了行業(yè)嚴(yán)重的周期性波動(dòng)特征。該公司的主要客戶群包括圣路易斯地區(qū)的飛機(jī)和汽車制造商。在20世紀(jì)60年代中后期,漢普頓由于強(qiáng)大的汽車市場,以及與越南戰(zhàn)爭相關(guān)的巨額國防開支,利潤非常豐厚。然而,在20世紀(jì)70年代中期,隨著美國從越南戰(zhàn)爭和石油禁運(yùn)中撤出,漢普頓的盈利速度放緩。到20世紀(jì)70年代末,由于他們的競爭對(duì)手無法度過這段艱難時(shí)期,他們?cè)谑袌錾险加辛烁蟮姆蓊~,而漢普頓設(shè)法穩(wěn)定下來。
Introduction:介紹
Hampton Machine Tool Company, a machine tool manufacturer, was founded in 1915. Until 1979, the company had successfully forecasted the severe cyclical fluctuations characteristic of the industry. The company’s primary customer base included the aircraft and automobile manufacturers in the St. Louis area. During the mid – to late 1960s, Hampton was very profitable due to a strong automobile market, and, to the heavy defense spending associated with the Vietnam War. However, in the mid-1970s, Hampton’s profitability slowed down with the United States’ withdrawal from Vietnam War and the oil embargo. By the late 1970s, they had a larger share in the market due to their competitors who were unable to make it through these difficult times, while Hampton managed to stabilize.
Case Background:案例背景:
Ten years prior to December, 1978, the company had no debt because it had conservative financial policies, which maintained a strong working capital position as a buffer against economic uncertainty. In December,1978, Hampton requested a $1 million loan from the St. Louis National Bank. The loan’s terms were a monthly interest payment at a rate of 1.5%, with the principal to be paid back at the end of September, 1979. Now (September of 1979), Benjamin G. Cowins, president of Hampton, has asked to renew the initial loan until end of 1979, and, has requested an additional loan of $350,000 with promise of repayment at the end of December, 1979 with an interest rate of 1.5% per month. This additional loan is required for an update of their machinery which hasn’t been done since the economy went into a recession in the early 1970s.
在1978年12月之前的10年,該公司沒有債務(wù),因?yàn)樗斜J氐呢?cái)務(wù)政策,這保持了強(qiáng)大的營運(yùn)資本頭寸,作為對(duì)經(jīng)濟(jì)不確定性的緩沖。1978年12月,漢普頓向圣路易斯國家銀行申請(qǐng)了100萬美元的貸款。該貸款的條件是每月支付1.5%的利息,并在1979年9月底償還本金。現(xiàn)在(1979年9月),本杰明·g·考恩斯,漢普頓的總裁,要求將最初的貸款延長到1979年底,并要求額外貸款35萬美元,承諾在1979年12月底償還,利率為每月1.5%。這些額外的貸款是為了更新他們的機(jī)器而需要的,自從20世紀(jì)70年代早期經(jīng)濟(jì)陷入衰退以來,他們就沒有這樣做過。
For the last several months, Hampton’s shipment schedule has been upset because they have had to wait for parts from their suppliers. On August 31, the accumulation of seven machines cost about $1,320,000, in addition to the installation cost for these parts. They received the parts last week, and will be able to complete a number of machines within next few weeks. The reduction in work in progress of about $1,320,000 is due to not receiving the electronic control mechanisms on time. However, the remainder of their work in progress inventories will probably remain steady for the foreseeable future because of their capacity rate of production.
In July and August, Hampton bought raw materials beyond their immediate needs to be assured of completing their order schedule to be shipped by the end of the year. Therefore, they currently have accumulated about $420,000 worth of scarcer components above their normal raw materials inventories. They estimate it will be used by the end of the year. Because they bought ahead this way, they expect to cut raw material purchases to about $600,000 a month in each of the four remaining months of 1979.
在7月和8月,漢普頓購買了超出他們當(dāng)前需求的原材料,以確保完成他們的訂單計(jì)劃,并在年底發(fā)貨。因此,他們目前已經(jīng)積累了價(jià)值約42萬美元的稀有部件,超過了正常的原材料庫存。他們估計(jì)它將在年底使用。由于他們以這種方式提前購買,他們預(yù)計(jì)在1979年剩下的四個(gè)月里,每個(gè)月的原材料采購將減少到大約60萬美元。
The company’s revised shipment estimates are: September, $2,163,000; October, $1,505,000; November $1,604,000; December, $2,265,000. The shipment estimates include a $2,100,000 order for the General Aircraft Corporation. Hampton is now scheduled to ship against this order as follows: September, $840,000; October, $840,000; November, $420,000. Because General Aircraft gave Hampton an advance payment of $1,566,000 on this order, the company will be due nothing on these shipments until their $1,566,000 credit with Hampton is exhausted.
該公司修正后的出貨預(yù)估為:9月份,216.3萬美元;10月,1505000美元;11月1604000美元;12月,2265000美元。這批貨物中包括通用飛機(jī)公司210萬美元的訂單。漢普頓現(xiàn)在計(jì)劃根據(jù)這個(gè)訂單出貨如下:9月,$84萬;10月,840000美元;11月,420000美元。因?yàn)橥ㄓ煤娇展驹谶@張訂單上給了漢普頓156.6萬美元的預(yù)付款,所以該公司在漢普頓的156.6萬美元信用到期之前不會(huì)對(duì)這些貨物進(jìn)行任何支付。
Hampton’s assuming accruals will remain about the same on August 31, and their monthly outlay for all expenses other than interest and raw materials purchases should be around $400,000 per month. Due to poor economic conditions and the company’s desire to conserve cash; they have spent little on new equipment in the last several years, 1979. This has contributed somewhat to the difficulties they have had in maintaining production at full capacity this year. As a result, Hampton has requested an additional $350,000 loan at an interest rate of 1.5% monthly, with promise of repayment at the end of December, 1979. This loan is necessary to purchase certain needed equipment to maintain the production. The tax people estimated the equipment will qualify for a 10% investment tax credit. The company is scheduled to pay $181,000 in taxes on September 15 and December 15. Also, Mr. Cowins has suggested paying $150,000 dividends to stockholders in December.
Analysis:分析
The Hampton Machine Tool Company is facing problems in paying its $1 million loan and requesting for a new loan from the St. Louis National Bank. By following Mr. Cowins’ plan, the company will be short $332,000 (Exhibit 1) in December. Hampton, a profitable firm, has fallen behind on their orders, and Mr. Cowins recommends that they need more financing to purchase certain needed equipment. Hampton has notified the St. Louis National Bank that they will not be able to repay in September. Also, they have requested an extension. For the past month or more, Hampton has been operating at full capacity, and with additional back orders, which has put them behind in their shipment of orders. In addition, their shipment schedule has been upset because they have been waiting for electronic control mechanisms from their suppliers. The falling behind has also caused them to have less than what is needed for accounts receivables turnover.
漢普頓機(jī)床公司在支付100萬美元貸款和向圣路易斯國家銀行申請(qǐng)新貸款方面面臨問題。按照考恩斯的計(jì)劃,該公司將在12月少賺33.2萬美元(證據(jù)1)。漢普頓是一家盈利的公司,但他們的訂單卻落后了??嘉乃菇ㄗh,他們需要更多的資金來購買某些必要的設(shè)備。漢普頓已經(jīng)通知圣路易斯國家銀行,他們將無法在9月份償還貸款。另外,他們要求延期。在過去的一個(gè)多月里,漢普頓一直在滿負(fù)荷運(yùn)轉(zhuǎn),而且還有額外的延期訂單,這使得他們無法按時(shí)發(fā)貨。此外,由于他們一直在等待供應(yīng)商提供的電子控制裝置,所以他們的發(fā)貨時(shí)間表被打亂了。落后也導(dǎo)致他們的應(yīng)收賬款周轉(zhuǎn)不足。
The cash budgets and statement of sources and uses yield negative results concerning the principal payment of the loan for December (Exhibit 1), based on Mr. Cowins’ plan. This analysis is based on projected sales, dividend payments and tax payments. Consequently, the sales projects and accounts receivables are 30 days net; if not paid on time, then this could change the results significantly by putting the company in more of a financial bind. Based on my forecasts it seems that Mr. Cowins is incorrect about being able to repay the loan in December, but Hampton should be able to repay in January with more precise planning.
Hampton used the initial loan plus $2 million in excess cash to repurchase a substantial fraction of its outstanding common stock, because it had decreased sufficiently in value. Although they had good intentions to increase the company’s stock value, their finances have suffered because of the repurchase. Mr. Cowins’ offer to pay $150,000 in dividends in December is not reasonable, because Hampton’s finances will suffer, causing them to have negative cash flows. (Exhibit 1)
漢普頓用最初的貸款加上200萬美元多余的現(xiàn)金回購了相當(dāng)大一部分未償普通股,因?yàn)檫@些股票的價(jià)值已經(jīng)降到了足夠低的水平。雖然他們有提高公司股票價(jià)值的良好意圖,但他們的財(cái)務(wù)狀況因回購而受到影響??嘉乃固岢鲈?2月支付15萬美元股息,這是不合理的,因?yàn)闈h普頓的財(cái)務(wù)狀況將受到影響,導(dǎo)致現(xiàn)金流為負(fù)。(表1)
Recommendation:推薦:
It is obvious that Hampton cannot afford to repay the loan in December, if they proceed with their original plans. The company will have a negative cash flow in December according to Exhibit 1. They should request a one-month extension on the loan, as they cannot afford to make a loan payment in December. Extending the loan repayment one month until January allows for account receivables of December to become collected, because of the company collection policy of 30 days net. This means Hampton will not have to go into the negative to pay the loan in December, keeping cash flow at an expectable level which is $1,168.50. (Exhibit 2)
很明顯,漢普頓無法在12月償還貸款,如果他們繼續(xù)他們?cè)瓉淼挠?jì)劃。根據(jù)表1,公司在12月將有負(fù)的現(xiàn)金流。如果到12月份還不起貸款,就應(yīng)該要求延期一個(gè)月。將貸款償還期限延長一個(gè)月至1月份,可以收回12月份的應(yīng)收賬款,因?yàn)楣镜氖栈卣呤?0天的凈額。這意味著漢普頓在12月不必為償還貸款而進(jìn)入負(fù)值,將現(xiàn)金流保持在1,168.50美元的預(yù)期水平。(表2)
Hampton cannot afford to make a dividend payment in December, regardless of their willingness to do so. Canceling the dividend payment will free up $150,000 in December, keeping the net cash flow in the positive (Exhibit 2), which compensates for the $350,000 loan payment. This also helps keep the net cash flow positive in December, as well as waiting for accounts receivables of $2,265,000 to come in January for the final payment. This makes the company profitable for the future, and, in turn, the stock will not become valueless.
Conclusion:結(jié)論
My recommendation for Hampton Machine Tool Company is they should request a one month extension on the loan, and cancel the dividend payment to make the company more profitable. Also, this would strengthen Hampton’s relationship with the bank by paying off both loans.
我對(duì)漢普頓機(jī)床公司的建議是,他們應(yīng)該要求延期一個(gè)月的貸款,并取消股息支付,使公司更有利可圖。此外,這將加強(qiáng)漢普頓與銀行的關(guān)系,償還兩筆貸款。
Based on the forecasted cash budget, Mr. Jerry Eckwood, vice-president of the St. Louis National Bank, should reject the $350,000 loan request based on the current terms proposed by Hampton Machine Tool Company. According to Exhibit 1, there is an inability to repay the initial loan. The numbers fall short of being able to repay the original loan in December without even considering the requested loan. However, with the proper financial adjustments, both loans can be fully repaid by January. For relationship reasons, Mr. Eckwood may want to grant the loan, as long as the terms are reworked to help guarantee, that the bank will get paid. The extension of the loan and cancelation dividends will leave Hampton in a manageable situation, allowing them to continue to be a profitable customer of the bank. The St. Louis National Bank should bring up the solutions that I mentioned above, but Mr. Eckwood will want to make sure that the bank puts Hampton on a repayment plan, so, that in the near future they can expect to collect the principal of the outstanding loans.
If I was the St. Louis National Bank, I would have to reject the loan on the current terms proposed by Mr. Cowins, because the Hampton Machine Tool Company shows an inability to repay the loan, based on the numbers they have forecast.
如果我是圣路易斯國家銀行(St. Louis National Bank),我將不得不根據(jù)考恩斯先生提出的當(dāng)前條款拒絕貸款,因?yàn)楦鶕?jù)他們預(yù)測的數(shù)字,漢普頓機(jī)床公司(Hampton Machine Tool Company)顯示出無力償還貸款。
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