WhatsApp

Aes Corporation B Global Sourcing Initiative Financial Analysis Case Study Help


Aes Corporation B Global Sourcing Initiative Financial Analysis Financial Analysis Case Study HelpThe financial position of Aes Corporation B Global Sourcing Initiative Financial Analysis can be examined by having a look at its ratio analysis.

Declining Profitability:

The decreasing net profitability, revealing a negative trend from 2006 to 2007 suggests that expenses have actually increased far more than the business is able to manage provided its present resources. With a long term debt adding to the interest cost, Aes Corporation B Global Sourcing Initiative Financial Analysis is in alarming requirement of an alternative income stream.

Declining Liquidity:

Declining Liquidity: We can see a major declining pattern in the current ratio too showing a fall in liquidity which is another point of concern for Aes Corporation B Global Sourcing Initiative Financial Analysis particularly as it has a long term financial obligation to pay off. With the present assets not in a position to settle the present liabilities, we can see how the company would remain in a major monetary problem unless the cash flow enhances with extra sources of financing.

Rising Debt to Assets Ratio:

We could check out the monetary condition of Aes Corporation B Global Sourcing Initiative Financial Analysis even more by taking a look at the company's total debt to total possessions ratio in appendix 2. We can see how the total assets of the business have been decreasing from 2005 onwards. The long term debt has stayed at $160 million while the brief term debt has actually increased side by side. Such a situation has actually brought Aes Corporation B Global Sourcing Initiative Financial Analysis to a point where its total debt to overall possessions ratio has actually increased. An increasing overall debt to total properties ratio recommends that the danger has increased in regards to the company's properties not sufficing to cover its overall liabilities. This might not be showing the general liquidity position however offers clearness in terms of the general monetary position of the company.

/Financial Feasibility