The monetary position of Anderson Street Financial Analysis can be examined by taking a look at its ratio analysis.
The decreasing net profitability, revealing an unfavorable trend from 2006 to 2007 recommends that expenses have actually increased far more than the company is able to manage offered its present resources. With a long term debt including to the interest cost, Anderson Street Financial Analysis is in alarming need of an alternative earnings stream.
We can see a major declining trend in the existing ratio too showing a fall in liquidity which is another point of issue for Anderson Street Financial Analysis specifically as it has a long term financial obligation to settle as well. With the existing properties not in a position to settle the present liabilities, we can see how the company would remain in a significant monetary trouble unless the cash flow improves with extra sources of finance.
We could explore the monetary condition of Anderson Street Financial Analysis further by taking a look at the business's total debt to total properties ratio in appendix 2. We can see how the total assets of the company have been declining from 2005 onwards. However, the long term financial obligation has remained at $160 million while the short term debt has actually increased side by side. Such a scenario has brought Anderson Street Financial Analysis to a point where its total financial obligation to overall assets ratio has increased. A rising overall financial obligation to total possessions ratio suggests that the risk has increased in regards to the business's properties not sufficing to cover its overall liabilities. This may not be revealing the overall liquidity position however gives clearness in terms of the total financial position of the business.