The financial position of Psi India Will Balbir Pasha Help Fight Aids A Financial Analysis can be assessed by taking a look at its ratio analysis.
We can see in appendix 1 how the revenue has been declining over the years after 2005. The truth that the gross revenue margin has actually decreased as well suggests that the expense of sales have not gone down at the very same rate. The declining net profitability, revealing a negative pattern from 2006 to 2007 suggests that costs have increased even more than the company is able to manage given its current resources. With a long term debt contributing to the interest expenditure, Psi India Will Balbir Pasha Help Fight Aids A Financial Analysis is in dire need of an alternative revenue 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 concern for Psi India Will Balbir Pasha Help Fight Aids A Financial Analysis particularly as it has a long term financial obligation to pay off. With the current properties not in a position to pay off the present liabilities, we can see how the company would be in a significant monetary problem unless the capital improves with additional sources of finance.
Rising Financial Obligation to Assets Ratio: We might explore the financial condition of Psi India Will Balbir Pasha Help Fight Aids A Financial Analysis even more by looking at the business's overall debt to overall properties ratio in appendix 2. Such a situation has brought Psi India Will Balbir Pasha Help Fight Aids A Financial Analysis to a point where its overall debt to overall properties ratio has increased. An increasing overall financial obligation to total assets ratio suggests that the threat has increased in terms of the company's assets not being enough to cover its total liabilities.