The monetary position of Colby General Hospital A Financial Analysis can be assessed by having a look at its ratio analysis.
We can see in appendix 1 how the income has been declining for many years after 2005. Nevertheless, the truth that the gross profit margin has actually decreased also recommends that the cost of sales have not gone down at the exact same speed. The declining web profitability, revealing a negative trend from 2006 to 2007 suggests that costs have actually increased even more than the company has the ability to manage provided its present resources. With a long term debt adding to the interest expenditure, Colby General Hospital A Financial Analysis remains in dire requirement of an alternative income stream.
We can see a major decreasing pattern in the present ratio too revealing a fall in liquidity which is another point of issue for Colby General Hospital A Financial Analysis specifically as it has a long term financial obligation to pay off too. With the existing assets not in a position to settle the current liabilities, we can see how the company would be in a major financial difficulty unless the cash flow enhances with extra sources of finance.
Rising Financial Obligation to Assets Ratio: We could explore the financial condition of Colby General Hospital A Financial Analysis even more by looking at the business's total financial obligation to total assets ratio in appendix 2. Such a scenario has actually brought Colby General Hospital A Financial Analysis to a point where its overall financial obligation to total properties ratio has actually increased. A rising overall financial obligation to total assets ratio suggests that the risk has actually increased in terms of the company's assets not being enough to cover its overall liabilities.