The monetary position of Unitus B Microfinance 20 Reinventing An Industry Financial Analysis can be examined by having a look at its ratio analysis.
We can see in appendix 1 how the income has been decreasing throughout the years after 2005. However, the reality that the gross profit margin has decreased as well suggests that the cost of sales have not gone down at the very same speed. The decreasing internet profitability, showing an unfavorable trend from 2006 to 2007 recommends that expenses have increased far more than the business has the ability to handle given its existing resources. With a long term debt adding to the interest expense, Unitus B Microfinance 20 Reinventing An Industry Financial Analysis is in dire need of an alternative income stream.
We can see a major declining pattern in the current ratio too showing a fall in liquidity which is another point of concern for Unitus B Microfinance 20 Reinventing An Industry Financial Analysis especially as it has a long term debt to pay off as well. With the present possessions not in a position to pay off the current liabilities, we can see how the business would remain in a significant financial problem unless the capital enhances with extra sources of financing.
We could explore the financial condition of Unitus B Microfinance 20 Reinventing An Industry Financial Analysis even more by taking a look at the business's total financial obligation to total possessions ratio in appendix 2. We can see how the overall possessions of the company have been declining from 2005 onwards. The long term financial obligation has remained at $160 million while the brief term debt has increased side by side. Such a scenario has actually brought Unitus B Microfinance 20 Reinventing An Industry Financial Analysis to a point where its overall financial obligation to overall assets ratio has actually increased. A rising total financial obligation to total properties ratio suggests that the danger has increased in terms of the business's possessions not sufficing to cover its overall liabilities. This might not be showing the overall liquidity position but gives clarity in terms of the total financial position of the business.