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Blackstone And The Sale Of Citigroups Loan Portfolio Financial Analysis Case Study Help


Blackstone And The Sale Of Citigroups Loan Portfolio Financial Analysis Financial Analysis Case Study HelpThe financial position of Blackstone And The Sale Of Citigroups Loan Portfolio Financial Analysis can be evaluated by having a look at its ratio analysis.

Declining Profitability:

The decreasing net profitability, revealing a negative trend from 2006 to 2007 recommends that expenses have increased far more than the company is able to handle provided its present resources. With a long term financial obligation including to the interest expense, Blackstone And The Sale Of Citigroups Loan Portfolio Financial Analysis is in alarming need of an alternative profits stream.

Declining Liquidity:

We can see a major declining pattern in the present ratio too revealing a fall in liquidity which is another point of issue for Blackstone And The Sale Of Citigroups Loan Portfolio Financial Analysis especially as it has a long term financial obligation to pay off also. With the existing possessions not in a position to pay off the present liabilities, we can see how the company would be in a major financial trouble unless the capital enhances with extra sources of financing.

Rising Debt to Assets Ratio:

We could explore the financial condition of Blackstone And The Sale Of Citigroups Loan Portfolio Financial Analysis further by looking at the business's total debt to total assets ratio in appendix 2. We can see how the total assets of the company have been decreasing from 2005 onwards. The long term debt has stayed at $160 million while the short term debt has increased side by side. Such a scenario has brought Blackstone And The Sale Of Citigroups Loan Portfolio Financial Analysis to a point where its overall financial obligation to total possessions ratio has actually increased as well. A rising total debt to total possessions ratio recommends that the risk has increased in terms of the company's properties not sufficing to cover its total liabilities. This might not be revealing the general liquidity position but offers clearness in regards to the general monetary position of the business.

/Financial Feasibility