The monetary position of Leader Bank Na Chinese Version Financial Analysis can be assessed by taking a look at its ratio analysis.
We can see in appendix 1 how the income has been declining over the years after 2005. However, the fact that the gross profit margin has decreased too suggests that the cost of sales have not decreased at the same pace. The declining web success, showing a negative pattern from 2006 to 2007 suggests that expenses have actually increased much more than the company has the ability to manage offered its current resources. With a long term debt contributing to the interest cost, Leader Bank Na Chinese Version Financial Analysis remains in alarming requirement of an alternative profits stream.
We can see a major declining trend in the current ratio too revealing a fall in liquidity which is another point of issue for Leader Bank Na Chinese Version Financial Analysis particularly as it has a long term debt to settle also. With the present assets not in a position to settle the existing liabilities, we can see how the company would remain in a major monetary trouble unless the cash flow enhances with extra sources of financing.
We could explore the financial condition of Leader Bank Na Chinese Version Financial Analysis even more 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. Nevertheless, the long term debt has stayed at $160 million while the short term debt has actually increased side by side. Such a scenario has actually brought Leader Bank Na Chinese Version Financial Analysis to a point where its total debt to overall possessions ratio has actually increased. A rising total debt to total properties ratio suggests that the danger has actually increased in terms of the business's assets not sufficing to cover its overall liabilities. This might not be revealing the general liquidity position however gives clarity in terms of the total monetary position of the business.