The monetary position of Ideal Standard France Pat Paterson Video Financial Analysis can be assessed by taking a look at its ratio analysis.
We can see in appendix 1 how the revenue has actually been decreasing throughout the years after 2005. However, the truth that the gross profit margin has actually decreased too suggests that the cost of sales have actually not gone down at the very same pace. The declining web profitability, showing an unfavorable pattern from 2006 to 2007 recommends that expenses have actually increased even more than the business has the ability to handle offered its present resources. With a long term debt contributing to the interest cost, Ideal Standard France Pat Paterson Video Financial Analysis remains in dire need of an alternative profits stream.
Declining Liquidity: We can see a major declining trend in the current ratio too revealing a fall in liquidity which is another point of concern for Ideal Standard France Pat Paterson Video Financial Analysis especially as it has a long term debt to pay off. With the current properties not in a position to pay off the existing liabilities, we can see how the business would remain in a major financial problem unless the cash flow improves with extra sources of financing.
Rising Debt to Assets Ratio: We might check out the monetary condition of Ideal Standard France Pat Paterson Video Financial Analysis even more by looking at the company's overall debt to overall assets ratio in appendix 2. Such a scenario has actually brought Ideal Standard France Pat Paterson Video Financial Analysis to a point where its overall debt to overall assets ratio has actually increased. A rising overall debt to overall assets ratio recommends that the threat has actually increased in terms of the business's properties not being enough to cover its overall liabilities.