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West Ham United Football Clubs Olympic Stadium Move Financial Analysis Case Study Help


West Ham United Football Clubs Olympic Stadium Move Financial Analysis Financial Analysis Case Study HelpThe financial position of West Ham United Football Clubs Olympic Stadium Move Financial Analysis can be assessed by taking a look at its ratio analysis.

Declining Profitability:

We can see in appendix 1 how the income has been decreasing throughout the years after 2005. The truth that the gross revenue margin has actually reduced as well suggests that the expense of sales have not gone down at the very same speed. The declining web success, revealing a negative pattern from 2006 to 2007 suggests that costs have actually increased far more than the company has the ability to manage provided its existing resources. With a long term debt contributing to the interest expenditure, West Ham United Football Clubs Olympic Stadium Move Financial Analysis is in alarming requirement of an alternative income stream.

Declining Liquidity:

We can see a major decreasing pattern in the current ratio too showing a fall in liquidity which is another point of issue for West Ham United Football Clubs Olympic Stadium Move Financial Analysis particularly as it has a long term financial obligation to settle as well. With the existing properties not in a position to pay off the existing liabilities, we can see how the business would remain in a significant monetary difficulty unless the cash flow enhances with additional sources of finance.

Rising Debt to Assets Ratio:

Increasing Financial Obligation to Possessions Ratio: We could check out the financial condition of West Ham United Football Clubs Olympic Stadium Move Financial Analysis further by looking at the company's overall financial obligation to overall possessions ratio in appendix 2. Such a scenario has actually brought West Ham United Football Clubs Olympic Stadium Move Financial Analysis to a point where its overall debt to overall properties ratio has increased. A rising total financial obligation to total possessions ratio suggests that the risk has increased in terms of the company's possessions not being enough to cover its overall liabilities.

/Financial Feasibility