| HBS Case Collection
(Revised from original 1991 version)
A senior loan officer is reviewing the recent performance of a company that has failed to repay its loan as scheduled. The failure results from a cyclical downturn in sales, coupled with a lag in cutting back production. Inventory risk is minimal. Teaching objective: Practice in financial analysis and in understanding the impact of business cycle on durable goods companies. Also an opportunity to evaluate the situation from a lender's perspective. A rewritten version of an earlier case.
Keywords: Borrowing and Debt;
Risk and Uncertainty;
Piper, Thomas R. "Dynashears, Inc." Harvard Business School Case 292-017, November 1993. (Revised from original October 1991 version.)