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The Craddock Cup Financial Analysis Case Study Help


The Craddock Cup Financial Analysis Financial Analysis Case Study HelpThe financial position of The Craddock Cup Financial Analysis can be examined by having a look at its ratio analysis.

Declining Profitability:

The decreasing web success, revealing a negative trend from 2006 to 2007 recommends that costs have increased far more than the company is able to manage provided its present resources. With a long term financial obligation adding to the interest expenditure, The Craddock Cup Financial Analysis is in dire need of an alternative income stream.

Declining Liquidity:

Declining Liquidity: We can see a significant declining trend in the existing ratio too revealing a fall in liquidity which is another point of concern for The Craddock Cup Financial Analysis particularly as it has a long term debt to pay off. With the existing assets not in a position to pay off the present liabilities, we can see how the business would remain in a major monetary trouble unless the cash flow improves with additional sources of finance.

Rising Debt to Assets Ratio:

Increasing Financial Obligation to Possessions Ratio: We could explore the monetary condition of The Craddock Cup Financial Analysis further by looking at the company's total financial obligation to overall assets ratio in appendix 2. Such a circumstance has actually brought The Craddock Cup Financial Analysis to a point where its overall debt to total properties ratio has actually increased. An increasing total financial obligation to total properties ratio suggests that the threat has actually increased in terms of the company's possessions not being enough to cover its total liabilities.

/Financial Feasibility