The financial position of Transformational Gaming Zyngas Social Strategy C Financial Analysis can be assessed by taking a look at its ratio analysis.
We can see in appendix 1 how the revenue has been declining for many years after 2005. The truth that the gross revenue margin has reduced as well recommends that the cost of sales have not gone down at the same rate. The decreasing internet success, showing an unfavorable pattern from 2006 to 2007 recommends that expenditures have actually increased much more than the company is able to handle offered its present resources. With a long term debt adding to the interest cost, Transformational Gaming Zyngas Social Strategy C Financial Analysis is in alarming need of an alternative revenue stream.
We can see a significant declining trend in the current ratio too revealing a fall in liquidity which is another point of concern for Transformational Gaming Zyngas Social Strategy C Financial Analysis particularly as it has a long term debt to settle too. With the existing properties not in a position to pay off the present liabilities, we can see how the business would remain in a significant monetary difficulty unless the cash flow improves with additional sources of financing.
We could explore the monetary condition of Transformational Gaming Zyngas Social Strategy C Financial Analysis even more by taking a look at the company's overall debt to total possessions ratio in appendix 2. We can see how the overall possessions of the company have actually been declining from 2005 onwards. The long term financial obligation has actually remained at $160 million while the short term financial obligation has increased side by side. Such a circumstance has actually brought Transformational Gaming Zyngas Social Strategy C Financial Analysis to a point where its overall financial obligation to total assets ratio has actually increased as well. An increasing overall debt to total assets ratio recommends that the risk has increased in terms of the company's properties not being enough to cover its total liabilities. This might not be revealing the general liquidity position however gives clearness in terms of the overall financial position of the business.