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Strategic Capital Management Llc B Financial Analysis Case Study Help


Strategic Capital Management Llc B Financial Analysis Financial Analysis Case Study HelpThe financial position of Strategic Capital Management Llc B Financial Analysis can be examined by having a look at its ratio analysis.

Declining Profitability:

We can see in appendix 1 how the income has been declining over the years after 2005. The reality that the gross revenue margin has reduced as well suggests that the expense of sales have not gone down at the same speed. The declining web success, revealing a negative trend from 2006 to 2007 suggests that costs have increased even more than the business has the ability to handle offered its existing resources. With a long term financial obligation adding to the interest cost, Strategic Capital Management Llc B Financial Analysis remains in dire need of an alternative earnings stream.

Declining Liquidity:

Declining Liquidity: We can see a major declining pattern in the current ratio too showing a fall in liquidity which is another point of concern for Strategic Capital Management Llc B Financial Analysis especially as it has a long term debt to pay off. With the present assets not in a position to settle the existing liabilities, we can see how the business would remain in a major financial trouble unless the capital enhances with additional sources of finance.

Rising Debt to Assets Ratio:

We could explore the financial condition of Strategic Capital Management Llc B Financial Analysis further by looking at the business's overall debt to total properties ratio in appendix 2. We can see how the total properties of the company have been decreasing from 2005 onwards. However, the long term financial obligation has remained at $160 million while the short term debt has actually increased side by side. Such a scenario has brought Strategic Capital Management Llc B Financial Analysis to a point where its overall debt to total assets ratio has increased too. A rising total financial obligation to total possessions ratio recommends that the risk has increased in regards to the company's possessions not sufficing to cover its total liabilities. This may not be showing the general liquidity position but offers clearness in regards to the total monetary position of the business.

/Financial Feasibility