The monetary position of Canyon Agassi Investing In Charter Schools Financial Analysis can be examined by having a look at its ratio analysis.
The decreasing net success, revealing an unfavorable trend from 2006 to 2007 recommends that expenses have increased far more than the company is able to handle given its current resources. With a long term debt including to the interest cost, Canyon Agassi Investing In Charter Schools Financial Analysis is in alarming need of an alternative income stream.
Declining Liquidity: We can see a major decreasing pattern in the existing ratio too showing a fall in liquidity which is another point of issue for Canyon Agassi Investing In Charter Schools Financial Analysis especially as it has a long term financial obligation to pay off. With the present assets not in a position to pay off the current liabilities, we can see how the company would be in a major financial difficulty unless the cash flow improves with extra sources of finance.
We might explore the financial condition of Canyon Agassi Investing In Charter Schools Financial Analysis even more by taking a look at the business's overall financial obligation to total assets ratio in appendix 2. We can see how the total assets of the company have actually been declining from 2005 onwards. The long term financial obligation has remained at $160 million while the brief term financial obligation has increased side by side. Such a scenario has brought Canyon Agassi Investing In Charter Schools Financial Analysis to a point where its overall financial obligation to total properties ratio has increased too. An increasing total debt to total assets ratio suggests that the threat has increased in regards to the business's properties not being enough to cover its total liabilities. This might not be revealing the general liquidity position but offers clearness in regards to the general financial position of the business.