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Citigroups Exchange Offer C Financial Analysis Case Study Help


Citigroups Exchange Offer C Financial Analysis Financial Analysis Case Study HelpThe monetary position of Citigroups Exchange Offer C Financial Analysis can be examined by having a look at its ratio analysis.

Declining Profitability:

We can see in appendix 1 how the earnings has been declining for many years after 2005. The reality that the gross revenue margin has actually reduced as well recommends that the expense of sales have not gone down at the exact same speed. The declining internet profitability, showing a negative trend from 2006 to 2007 recommends that costs have actually increased much more than the business is able to manage given its present resources. With a long term financial obligation adding to the interest expense, Citigroups Exchange Offer C Financial Analysis remains in alarming requirement of an alternative profits stream.

Declining Liquidity:

Decreasing Liquidity: We can see a major decreasing pattern in the present ratio too revealing a fall in liquidity which is another point of concern for Citigroups Exchange Offer C Financial Analysis especially as it has a long term financial obligation to pay off. With the existing possessions not in a position to pay off the present liabilities, we can see how the business would remain in a major monetary trouble unless the capital improves with extra sources of finance.

Rising Debt to Assets Ratio:

We might check out the monetary condition of Citigroups Exchange Offer C Financial Analysis even more by looking at the company's overall debt to total properties ratio in appendix 2. We can see how the total assets of the company have been decreasing from 2005 onwards. Nevertheless, the long term debt has actually stayed at $160 million while the short term financial obligation has increased side by side. Such a situation has actually brought Citigroups Exchange Offer C Financial Analysis to a point where its total debt to total assets ratio has increased. An increasing overall financial obligation to total possessions ratio suggests that the threat has actually increased in terms of the company's properties not sufficing to cover its overall liabilities. This may not be showing the total liquidity position however provides clearness in regards to the total monetary position of the business.

/Financial Feasibility