Case | HBS Case Collection | October 1991 (Revised January 2002)

Butler Lumber Company

by Thomas R. Piper

Abstract

The Butler Lumber Co. is faced with a need for increased bank financing due to its rapid sales growth and low profitability. Students must determine the reasons for the rising bank borrowing, estimate the amount of borrowing needed, and assess the attractiveness of the loan to the bank. A rewritten version of an earlier case. Allows students to practice ratio analysis, financial forecasting, and evaluating financing alternatives.

Keywords: Commercial Banking; Financial Crisis; Borrowing and Debt; Financial Strategy; Financing and Loans; Capital Structure; Forecasting and Prediction;

Citation:

Piper, Thomas R. "Butler Lumber Company." Harvard Business School Case 292-013, October 1991. (Revised January 2002.)