The financial position of Axa Mony Financial Analysis can be assessed by taking a look at its ratio analysis.
We can see in appendix 1 how the income has actually been declining over the years after 2005. Nevertheless, the fact that the gross profit margin has actually decreased as well suggests that the cost of sales have actually not gone down at the very same rate. The decreasing net success, showing a negative pattern from 2006 to 2007 suggests that costs have increased much more than the company has the ability to manage offered its current resources. With a long term financial obligation contributing to the interest expense, Axa Mony Financial Analysis is in alarming requirement of an alternative revenue stream.
Declining Liquidity: We can see a major decreasing pattern in the current ratio too showing a fall in liquidity which is another point of issue for Axa Mony Financial Analysis especially as it has a long term debt to pay off. With the present possessions not in a position to pay off the present liabilities, we can see how the business would be in a major financial trouble unless the cash flow enhances with additional sources of financing.
Rising Financial Obligation to Assets Ratio: We could check out the financial condition of Axa Mony Financial Analysis further by looking at the company's total debt to total properties ratio in appendix 2. Such a situation has brought Axa Mony Financial Analysis to a point where its total financial obligation to overall possessions ratio has increased. An increasing total financial obligation to overall assets ratio recommends that the danger has actually increased in terms of the business's properties not being enough to cover its overall liabilities.