The financial position of Joe Perez Financial Analysis can be assessed by having a look at its ratio analysis.
The decreasing web profitability, showing a negative pattern from 2006 to 2007 suggests that expenditures have increased far more than the company is able to manage provided its current resources. With a long term debt adding to the interest expenditure, Joe Perez Financial Analysis is in alarming need of an alternative revenue stream.
We can see a major declining pattern in the present ratio too revealing a fall in liquidity which is another point of issue for Joe Perez Financial Analysis specifically as it has a long term debt to pay off also. With the existing properties not in a position to settle the present liabilities, we can see how the company would remain in a major financial problem unless the cash flow enhances with additional sources of financing.
We might check out the monetary condition of Joe Perez Financial Analysis even more by taking a look at the business's overall debt to total assets ratio in appendix 2. We can see how the overall assets of the business have been declining from 2005 onwards. The long term debt has stayed at $160 million while the brief term financial obligation has actually increased side by side. Such a situation has actually brought Joe Perez Financial Analysis to a point where its total debt to total properties ratio has actually increased. An increasing total debt to total assets ratio recommends that the risk has actually increased in regards to the company's possessions not sufficing to cover its overall liabilities. This might not be showing the overall liquidity position however offers clearness in regards to the total financial position of the company.