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The October 2009 Petrobras Bond Issue C Financial Analysis Case Study Help


The October 2009 Petrobras Bond Issue C Financial Analysis Financial Analysis Case Study HelpThe monetary position of The October 2009 Petrobras Bond Issue C Financial Analysis can be examined by having a look at its ratio analysis.

Declining Profitability:

The declining net profitability, revealing a negative pattern from 2006 to 2007 suggests that expenditures have increased far more than the business is able to handle offered its current resources. With a long term financial obligation adding to the interest expenditure, The October 2009 Petrobras Bond Issue C Financial Analysis is in dire requirement of an alternative income stream.

Declining Liquidity:

Decreasing Liquidity: We can see a major decreasing trend in the present ratio too revealing a fall in liquidity which is another point of issue for The October 2009 Petrobras Bond Issue C Financial Analysis especially as it has a long term financial obligation 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 significant monetary trouble unless the capital improves with additional sources of financing.

Rising Debt to Assets Ratio:

We could check out the financial condition of The October 2009 Petrobras Bond Issue C Financial Analysis further by looking at the company's overall debt to total assets ratio in appendix 2. We can see how the total possessions of the business have actually been decreasing from 2005 onwards. However, the long term financial obligation has stayed at $160 million while the short term financial obligation has increased side by side. Such a scenario has actually brought The October 2009 Petrobras Bond Issue C Financial Analysis to a point where its total debt to overall possessions ratio has actually increased. A rising overall debt to total properties ratio recommends that the threat has increased in terms of the company's assets not being enough to cover its total liabilities. This may not be revealing the general liquidity position but offers clearness in terms of the total monetary position of the business.

/Financial Feasibility