The financial position of The Dynamis Fund An Energy Hedge Fund Financial Analysis can be evaluated by taking a look at its ratio analysis.
We can see in appendix 1 how the income has actually been declining throughout the years after 2005. However, the reality that the gross profit margin has reduced also recommends that the expense of sales have not decreased at the very same speed. The declining web success, revealing a negative pattern from 2006 to 2007 recommends that expenditures have actually increased far more than the company has the ability to manage given its current resources. With a long term debt contributing to the interest cost, The Dynamis Fund An Energy Hedge Fund Financial Analysis is in alarming requirement of an alternative income stream.
Declining Liquidity: We can see a significant declining pattern in the existing ratio too revealing a fall in liquidity which is another point of concern for The Dynamis Fund An Energy Hedge Fund Financial Analysis especially as it has a long term debt to pay off. With the existing properties not in a position to settle the present liabilities, we can see how the company would be in a major monetary difficulty unless the cash flow improves with extra sources of finance.
We could explore the monetary condition of The Dynamis Fund An Energy Hedge Fund Financial Analysis even more by looking at the business's total debt to total possessions ratio in appendix 2. We can see how the total assets of the business have been declining from 2005 onwards. The long term debt has actually remained at $160 million while the short term financial obligation has increased side by side. Such a scenario has brought The Dynamis Fund An Energy Hedge Fund Financial Analysis to a point where its total debt to total possessions ratio has increased. An increasing overall debt to total possessions ratio suggests that the danger has actually increased in terms of the business's possessions not being enough to cover its overall liabilities. This may not be revealing the total liquidity position but gives clarity in terms of the overall financial position of the business.