The financial position of American Dream Spanish Version Financial Analysis can be assessed by having a look at its ratio analysis.
We can see in appendix 1 how the revenue has actually been decreasing over the years after 2005. The fact that the gross profit margin has decreased as well recommends that the expense of sales have not gone down at the same rate. The declining web profitability, showing a negative pattern from 2006 to 2007 recommends that costs have actually increased much more than the business is able to manage given its current resources. With a long term debt contributing to the interest expense, American Dream Spanish Version Financial Analysis is in dire requirement of an alternative revenue stream.
Decreasing Liquidity: We can see a significant declining trend in the current ratio too revealing a fall in liquidity which is another point of concern for American Dream Spanish Version Financial Analysis especially as it has a long term financial obligation to pay off. With the present properties not in a position to settle the present liabilities, we can see how the company would be in a significant monetary trouble unless the capital enhances with additional sources of financing.
Rising Financial Obligation to Properties Ratio: We could explore the financial condition of American Dream Spanish Version Financial Analysis further by looking at the company's overall financial obligation to overall possessions ratio in appendix 2. Such a circumstance has brought American Dream Spanish Version Financial Analysis to a point where its overall debt to overall properties ratio has actually increased. A rising overall debt to overall possessions ratio recommends that the risk has increased in terms of the business's assets not being enough to cover its total liabilities.