Case | HBS Case Collection | June 1986

Premier Furniture Co.

by Thomas R. Piper

Abstract

A credit analyst for a furniture manufacturer is confronted with two customers who have exceeded their credit limits. The financial performance of each has been weak, and one of the customers has a highly leveraged balance sheet. Industry conditions are weak; the manufacturer apparently has excess capacity; and the credit analyst is caught between the conflicting demands of the sales managers and the credit manager. The case provides an opportunity for ratio analysis.

Keywords: Cost vs Benefits; Financial Statements; Credit; Sales; Manufacturing Industry;

Citation:

Piper, Thomas R. "Premier Furniture Co." Harvard Business School Case 286-130, June 1986.