The financial position of Countrywide Plc Financial Analysis can be evaluated by having a look at its ratio analysis.
We can see in appendix 1 how the income has actually been declining for many years after 2005. Nevertheless, the truth that the gross profit margin has decreased too suggests that the expense of sales have not gone down at the very same pace. The decreasing web success, revealing a negative pattern from 2006 to 2007 recommends that costs have actually increased far more than the business is able to manage given its current resources. With a long term financial obligation contributing to the interest cost, Countrywide Plc Financial Analysis remains in alarming need of an alternative profits stream.
Declining Liquidity: We can see a significant declining pattern in the existing ratio too revealing a fall in liquidity which is another point of concern for Countrywide Plc Financial Analysis particularly as it has a long term debt to pay off. With the present assets not in a position to settle the present liabilities, we can see how the business would be in a significant financial difficulty unless the capital enhances with additional sources of financing.
Increasing Financial Obligation to Properties Ratio: We might check out the monetary condition of Countrywide Plc Financial Analysis further by looking at the business's total debt to overall possessions ratio in appendix 2. Such a scenario has brought Countrywide Plc Financial Analysis to a point where its overall debt to overall possessions ratio has increased. A rising total financial obligation to overall assets ratio suggests that the risk has increased in terms of the business's assets not being enough to cover its overall liabilities.