The monetary position of Five And Six Dulles Station Financial Analysis can be examined by having a look at its ratio analysis.
The decreasing net profitability, revealing an unfavorable trend from 2006 to 2007 suggests that expenditures have increased far more than the company is able to manage given its existing resources. With a long term debt adding to the interest expenditure, Five And Six Dulles Station Financial Analysis is in dire need of an alternative profits stream.
Decreasing Liquidity: We can see a major decreasing pattern in the present ratio too showing a fall in liquidity which is another point of issue for Five And Six Dulles Station Financial Analysis specifically as it has a long term financial obligation to pay off. With the present assets not in a position to settle the existing liabilities, we can see how the business would remain in a major monetary problem unless the capital enhances with extra sources of finance.
We could check out the financial condition of Five And Six Dulles Station Financial Analysis further by taking a look at the business's overall debt to total assets ratio in appendix 2. We can see how the total assets of the company have actually been declining from 2005 onwards. Nevertheless, the long term financial obligation has actually stayed at $160 million while the short-term financial obligation has increased side by side. Such a situation has brought Five And Six Dulles Station Financial Analysis to a point where its total financial obligation to overall possessions ratio has increased. A rising total debt to total assets ratio suggests that the danger has actually increased in regards to the business's possessions not sufficing to cover its overall liabilities. This may not be revealing the overall liquidity position however offers clearness in terms of the general financial position of the company.