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Equity International The Second Act Chinese Version Financial Analysis Case Study Help


Equity International The Second Act Chinese Version Financial Analysis Financial Analysis Case Study HelpThe monetary position of Equity International The Second Act Chinese Version Financial Analysis can be assessed by taking a look at its ratio analysis.

Declining Profitability:

The decreasing internet success, showing a negative pattern from 2006 to 2007 recommends that costs have actually increased far more than the company is able to manage offered its existing resources. With a long term financial obligation adding to the interest expenditure, Equity International The Second Act Chinese Version Financial Analysis is in alarming need of an alternative earnings stream.

Declining Liquidity:

We can see a significant decreasing pattern in the existing ratio too revealing a fall in liquidity which is another point of concern for Equity International The Second Act Chinese Version Financial Analysis especially as it has a long term debt to settle too. With the present assets not in a position to settle the existing liabilities, we can see how the company would remain in a significant financial trouble unless the cash flow improves with extra sources of financing.

Rising Debt to Assets Ratio:

We could check out the monetary condition of Equity International The Second Act Chinese Version Financial Analysis further by looking at the company's overall financial obligation to total properties ratio in appendix 2. We can see how the overall properties of the company have been declining from 2005 onwards. The long term debt has remained at $160 million while the short term debt has actually increased side by side. Such a scenario has actually brought Equity International The Second Act Chinese Version Financial Analysis to a point where its overall debt to overall assets ratio has actually increased. An increasing overall financial obligation to total possessions ratio suggests that the risk has increased in regards to the business's properties not being enough to cover its overall liabilities. This may not be revealing the overall liquidity position however offers clarity in regards to the overall financial position of the business.

/Financial Feasibility