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Huaneng Power International Inc Raising Capital In Global Markets Financial Analysis Case Study Help


Huaneng Power International Inc Raising Capital In Global Markets Financial Analysis Financial Analysis Case Study HelpThe monetary position of Huaneng Power International Inc Raising Capital In Global Markets Financial Analysis can be examined by having a look at its ratio analysis.

Declining Profitability:

We can see in appendix 1 how the earnings has actually been declining throughout the years after 2005. However, the truth that the gross profit margin has actually decreased too suggests that the cost of sales have not decreased at the very same pace. The declining net profitability, revealing an unfavorable trend from 2006 to 2007 recommends that expenditures have increased much more than the business is able to manage given its present resources. With a long term financial obligation contributing to the interest cost, Huaneng Power International Inc Raising Capital In Global Markets Financial Analysis remains in alarming requirement of an alternative profits stream.

Declining Liquidity:

We can see a significant declining pattern in the present ratio too revealing a fall in liquidity which is another point of concern for Huaneng Power International Inc Raising Capital In Global Markets Financial Analysis specifically as it has a long term debt to pay off too. With the current properties not in a position to settle the current liabilities, we can see how the business would remain in a significant financial problem unless the cash flow improves with extra sources of financing.

Rising Debt to Assets Ratio:

Rising Debt to Possessions Ratio: We might check out the monetary condition of Huaneng Power International Inc Raising Capital In Global Markets Financial Analysis even more by looking at the business's total financial obligation to total assets ratio in appendix 2. Such a scenario has brought Huaneng Power International Inc Raising Capital In Global Markets Financial Analysis to a point where its overall financial obligation to overall assets ratio has actually increased. An increasing total debt to total properties ratio recommends that the threat has increased in terms of the business's assets not being enough to cover its overall liabilities.

/Financial Feasibility