The financial position of Cyanamids New Take On Performance Appraisal Financial Analysis can be assessed by taking a look at its ratio analysis.
The decreasing net profitability, revealing a negative pattern from 2006 to 2007 recommends that costs have actually increased far more than the business is able to handle given its existing resources. With a long term financial obligation including to the interest expense, Cyanamids New Take On Performance Appraisal Financial Analysis is in dire need of an alternative profits stream.
Decreasing Liquidity: We can see a major declining trend in the current ratio too revealing a fall in liquidity which is another point of issue for Cyanamids New Take On Performance Appraisal Financial Analysis especially as it has a long term financial obligation to pay off. With the existing assets not in a position to settle the current liabilities, we can see how the business would remain in a major monetary problem unless the capital enhances with extra sources of finance.
We might explore the financial condition of Cyanamids New Take On Performance Appraisal Financial Analysis even more by taking a look at the company's total debt to total properties ratio in appendix 2. We can see how the total possessions of the company have actually been declining from 2005 onwards. The long term financial obligation has actually remained at $160 million while the brief term financial obligation has actually increased side by side. Such a circumstance has brought Cyanamids New Take On Performance Appraisal Financial Analysis to a point where its overall debt to total possessions ratio has actually increased. A rising total debt to total assets ratio recommends that the threat has actually increased in terms of the company's possessions not sufficing to cover its overall liabilities. This may not be revealing the overall liquidity position however gives clarity in regards to the overall monetary position of the business.