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Citigroups Exchange Offer Financial Analysis Case Study Help


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

Declining Profitability:

We can see in appendix 1 how the revenue has been decreasing over the years after 2005. The truth that the gross earnings margin has actually decreased as well recommends that the expense of sales have not gone down at the same pace. The declining web success, revealing an unfavorable pattern from 2006 to 2007 suggests that costs have actually increased far more than the company has the ability to handle given its current resources. With a long term debt adding to the interest cost, Citigroups Exchange Offer Financial Analysis remains in alarming need of an alternative income stream.

Declining Liquidity:

We can see a significant declining trend in the present ratio too revealing a fall in liquidity which is another point of issue for Citigroups Exchange Offer Financial Analysis specifically as it has a long term financial obligation to pay off also. With the present properties not in a position to pay off the current liabilities, we can see how the company would remain in a significant financial trouble unless the capital improves with additional sources of finance.

Rising Debt to Assets Ratio:

We might explore the financial condition of Citigroups Exchange Offer Financial Analysis even more by taking a look at the business's total debt to total assets ratio in appendix 2. We can see how the total properties of the business have been declining from 2005 onwards. Nevertheless, the long term financial obligation has remained at $160 million while the short-term financial obligation has actually increased side by side. Such a situation has actually brought Citigroups Exchange Offer Financial Analysis to a point where its overall debt to overall properties ratio has actually increased. An increasing total financial obligation to total assets ratio suggests that the risk has actually increased in regards to the company's possessions not sufficing to cover its overall liabilities. This might not be showing the general liquidity position but offers clearness in terms of the overall financial position of the company.

/Financial Feasibility