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Atlantic Energy Delmarva Power And Light A Financial Analysis Case Study Help


Atlantic Energy Delmarva Power And Light A Financial Analysis Financial Analysis Case Study HelpThe financial position of Atlantic Energy Delmarva Power And Light A Financial Analysis can be assessed by taking a look at its ratio analysis.

Declining Profitability:

The decreasing web profitability, revealing a negative pattern from 2006 to 2007 recommends that expenses have actually increased far more than the company is able to handle provided its current resources. With a long term financial obligation including to the interest expense, Atlantic Energy Delmarva Power And Light A Financial Analysis is in alarming need of an alternative revenue stream.

Declining Liquidity:

We can see a significant decreasing pattern in the existing ratio too showing a fall in liquidity which is another point of issue for Atlantic Energy Delmarva Power And Light A Financial Analysis especially as it has a long term debt to pay off too. With the existing possessions not in a position to settle the current liabilities, we can see how the company would be in a major financial difficulty unless the capital improves with additional sources of financing.

Rising Debt to Assets Ratio:

We could check out the financial condition of Atlantic Energy Delmarva Power And Light A 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 overall assets of the company have been declining from 2005 onwards. However, the long term financial obligation has actually remained at $160 million while the short-term financial obligation has actually increased side by side. Such a situation has actually brought Atlantic Energy Delmarva Power And Light A Financial Analysis to a point where its total financial obligation to overall properties ratio has actually increased. An increasing total financial obligation to total possessions ratio recommends that the risk has increased in terms of the business's assets not sufficing to cover its overall liabilities. This may not be showing the overall liquidity position but gives clarity in terms of the total financial position of the company.

/Financial Feasibility