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Discuss at least 1-2 ratios that you believe are important to ascertain the financial position of the company. Do you believe this company has the means to pay its debt?Financial ratio analysis makes it possible to examine the financial health of a company. The financial statements of a company provide limited understanding and knowledge into its performance. So as to attain a much stronger and richer insight of what takes place, there has to be a relevant basis of evaluation and appraisal. Various financial ratios are key to ascertaining the financial position of XYZ Company. One of these ratios are profitability ratios, which indicate the ability of a firm to convert its sales into profits. The return on assets of the company is 12.0%, return in equity 21.82% and gross margin 32.21%. This indicates that the company is profitable and therefore in a financially stable position. For instance, for every dollar of sales, the company is able to generate a return of 32.21 cents. Another set of ratios that outline the financial position of a company is liquidity ratios. These financial ratios are ratios that indicate a company's ability to pay for its short-term liabilities. The quick ratio of the company is 1.51 and the current ratio is 2.20. This implies that the current assets...
These ratios indicate that XYZ Company is in a stable financial position based on the financial ratios of the past fiscal year (Atrill and Mclaney, 2013).
A key ratio that indicates the financial position of the company is the debt coverage ratio. This financial ratio ascertains the capability of a company to generate adequate income in its business operations to cover the expenses of its debt. The debt coverage ratio of the company as indicated is 0.61 and has been below 1 in the current year. This indicates that the firm is not able to generate enough cash to pay its debts (Atrill and Mclaney, 2013).
What do you think are the key risks facing LNG producers in Qatar?
The key risks facing LNG producers in Qatar encompass the growing level of competition. The new LNG supplies recently found in Australia and also new supplies in the United States are increasing in capacity. This implies that Qatar may soon cease being the biggest LNG exporter in the globe. Aside from the risk of Qatar losing their dominance in the world, they face another risk in the fact that other importers in the world are having more options and obtaining lower prices,…
However, we can see in 2001 that the company has worked out many of the difficulties associated with the purchase. The long-term debt is being reduced. Many of the costs that had skyrocketed were brought under control. Thus, while revenues increased, expenses such as R&D and interest decreased. Other expenses grew at a slower rate than did revenues. Selling expenses grew at half the rate of revenues, and G&a
XYZ Limited specializes in manufacturing and marketing of Computer Laser Accessories, and the management of the company has decided to increase the sales within the next five fiscal years using aggressive marketing campaign, and supplier acquisition. Using this strategy, the company will achieve its sales objectives. The first part of the paper discuses the company sales forecast for the next five years. The second part discuses the strategy that
Valuation and Financial Statements Shareholder Value The question of shareholder interest as it pertains to a takeover bid is dependent on a variety of factors, not the least of which is the valuation of the company as determined by the board of directors and executive management. While current stock price plays a relevant role, valuation depends on analysis conducted in key areas including but not limited to: earnings multiple times EBITDA, price
Product/Services/Promotional Strategies Offered by XYZ Company, and My Own Web Page Web Promotional Strategies A Report on the Product/Services/Promotional Strategies of Kentucky Fried Chicken Kentucky Fried Chicken is a well-known brand in fast food restaurant. Started with a single recipe of Colonel Sanders, the restaurant has developed networks worldwide, offering fast food services family target market and franchise opportunities for investors. The company has seriously developed the web site as a gateway for
Pro-Formal 5-Year Financial Projection Overview of the XYZ Financial Statements Objective of this report is to provide 5-year pro-formal financial statements of the XYZ Company. The company financial statements reveal that the XYZ records net sales of the $1.74 Million at the end of the first fiscal year while the gross profit is $637, 428. Moreover, the company total operating expenses is $285,850 making the company to record the net profits $144,335.
Financial Management Firm Organization False. The form of business organization direct affects the taxation structure of the firm, particularly with regard to flow-through taxation on some forms (sole proprietorship, most partnerships) and not on others (most corporations). Firm Organization False. The partners in a regular partnership have a high degree of liability. Partnership True. Most partnerships remains fairly small due to these constraints. Proprietorship True. In a sole proprietorship, the owner holds all the capital, making it difficult