The monetary position of Metromedia Broadcasting Corp Financial Analysis can be evaluated by taking a look at its ratio analysis.
The declining net profitability, showing a negative pattern from 2006 to 2007 suggests that costs have increased far more than the company is able to manage provided its present resources. With a long term debt including to the interest expenditure, Metromedia Broadcasting Corp Financial Analysis is in alarming requirement of an alternative profits stream.
Declining Liquidity: We can see a major declining pattern in the existing ratio too revealing a fall in liquidity which is another point of issue for Metromedia Broadcasting Corp Financial Analysis particularly as it has a long term debt to pay off. 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 trouble unless the cash flow improves with additional sources of financing.
Increasing Debt to Properties Ratio: We could check out the monetary condition of Metromedia Broadcasting Corp Financial Analysis further by looking at the company's overall financial obligation to overall assets ratio in appendix 2. Such a scenario has brought Metromedia Broadcasting Corp Financial Analysis to a point where its overall financial obligation to overall possessions ratio has actually increased. A rising total financial obligation to total possessions ratio recommends that the danger has increased in terms of the business's possessions not being enough to cover its overall liabilities.