The monetary position of Robert Mondavi Corp Caliterra A Financial Analysis can be evaluated by having a look at its ratio analysis.
We can see in appendix 1 how the revenue has been decreasing over the years after 2005. Nevertheless, the fact that the gross profit margin has decreased as well recommends that the expense of sales have not decreased at the exact same rate. The declining net profitability, showing an unfavorable trend from 2006 to 2007 suggests that expenses have actually increased even more than the business has the ability to manage given its current resources. With a long term debt adding to the interest expense, Robert Mondavi Corp Caliterra A Financial Analysis is in alarming requirement of an alternative earnings stream.
We can see a major declining trend in the present ratio too revealing a fall in liquidity which is another point of issue for Robert Mondavi Corp Caliterra A Financial Analysis specifically as it has a long term debt to pay off as well. With the present possessions not in a position to settle the present liabilities, we can see how the business would remain in a major financial trouble unless the cash flow enhances with extra sources of finance.
We might explore the financial condition of Robert Mondavi Corp Caliterra A Financial Analysis further by looking at the business's overall financial obligation to total assets ratio in appendix 2. We can see how the overall assets of the company have actually been decreasing from 2005 onwards. The long term financial obligation has stayed at $160 million while the brief term financial obligation has actually increased side by side. Such a scenario has brought Robert Mondavi Corp Caliterra A Financial Analysis to a point where its total debt to total possessions ratio has actually increased also. An increasing total debt to total properties ratio recommends that the danger has actually increased in regards to the company's possessions not being enough to cover its total liabilities. This might not be revealing the general liquidity position however offers clarity in regards to the total financial position of the business.