Labels:text | screenshot | number | font OCR: :JASENSITIVITY RATIOS LIMITS FM Industry: Retail - General OTHER SENSITIVITY RATIOS :. INDUSTRY Sales Groutlet 10.0 Gross Margin - % of sales 5.0 SG&A - Z of sales 6:0 4.0 Accounts Receivable - days 4.0 4.0 Inventory days 10.0 8.0 Accounts Payable - days 4.0 5.0 KEY RATIO LIMITS! Current Ratio 1.5 1.3 #: * High Leverage - 4.0 4.0 Low Leverage 1.0 1.0 Leverage Change - 20.0 High Accounts Receivable - days 75.0 15.0 30.0 Allowance for Doubtful Accounts - % of A/R 5.0 5.0 High Inventory - days: 90.0 .75.0 High Accounts Payable - days $5.0 45.0 Low Accounts Payable days 15.0 15.0 Gross Margin less SGRA - > change 6.9 6.0 Operating Profit Margin' Z . 5.8 5.0 Operating Profit Margin - > change 45.0 15.0 Figure 4. A Credit Policy Guidelines Screen. Credit Policy Guidelines allow each bank's credit administrator to set the limits and sensitivity levels for key financial indicators. The bank may specify different limits for various industries and geographic regions, according to its loan port- folio goals and risk tolerance.
