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Kent County Council Implementing It For E Government Financial Analysis Case Study Help


Kent County Council Implementing It For E Government Financial Analysis Financial Analysis Case Study HelpThe monetary position of Kent County Council Implementing It For E Government Financial Analysis can be assessed by taking a look at its ratio analysis.

Declining Profitability:

The declining web success, showing a negative pattern from 2006 to 2007 recommends that expenses have increased far more than the business is able to manage provided its existing resources. With a long term financial obligation adding to the interest expenditure, Kent County Council Implementing It For E Government Financial Analysis is in dire need of an alternative income stream.

Declining Liquidity:

We can see a significant decreasing trend in the current ratio too revealing a fall in liquidity which is another point of issue for Kent County Council Implementing It For E Government Financial Analysis specifically as it has a long term debt to pay off also. With the existing possessions not in a position to settle the current liabilities, we can see how the company would be in a major monetary difficulty unless the cash flow improves with additional sources of financing.

Rising Debt to Assets Ratio:

We might explore the monetary condition of Kent County Council Implementing It For E Government Financial Analysis further by taking a look at the business's total debt to total possessions ratio in appendix 2. We can see how the total properties of the business have been decreasing from 2005 onwards. However, the long term debt has actually stayed at $160 million while the short term financial obligation has actually increased side by side. Such a circumstance has brought Kent County Council Implementing It For E Government Financial Analysis to a point where its overall financial obligation to total properties ratio has actually increased too. A rising overall financial obligation to total possessions ratio suggests that the danger has increased in regards to the company's assets not being enough to cover its overall liabilities. This might not be revealing the general liquidity position but offers clarity in terms of the general monetary position of the business.

/Financial Feasibility