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Moolani Foundation Financial Analysis Case Study Help


Moolani Foundation Financial Analysis Financial Analysis Case Study HelpThe monetary position of Moolani Foundation Financial Analysis can be assessed by having a look at its ratio analysis.

Declining Profitability:

We can see in appendix 1 how the revenue has been declining for many years after 2005. However, the fact that the gross profit margin has decreased also suggests that the expense of sales have actually not decreased at the same rate. The decreasing internet success, revealing a negative trend from 2006 to 2007 recommends that expenditures have actually increased even more than the company has the ability to manage provided its present resources. With a long term financial obligation contributing to the interest expenditure, Moolani Foundation Financial Analysis is in alarming requirement of an alternative revenue stream.

Declining Liquidity:

Decreasing Liquidity: We can see a significant declining pattern in the existing ratio too showing a fall in liquidity which is another point of concern for Moolani Foundation Financial Analysis specifically as it has a long term financial obligation to pay off. With the existing possessions not in a position to settle the present liabilities, we can see how the business would be in a significant financial trouble unless the cash flow improves with additional sources of financing.

Rising Debt to Assets Ratio:

Increasing Debt to Assets Ratio: We could explore the monetary condition of Moolani Foundation Financial Analysis even more by looking at the business's overall financial obligation to total assets ratio in appendix 2. Such a circumstance has actually brought Moolani Foundation Financial Analysis to a point where its total financial obligation to overall properties ratio has actually increased. An increasing overall debt to total assets ratio recommends that the danger has increased in terms of the company's possessions not being enough to cover its total liabilities.

/Financial Feasibility