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The Recs Project C Financial Analysis Case Study Help


The Recs Project C Financial Analysis Financial Analysis Case Study HelpThe financial position of The Recs Project C Financial Analysis can be evaluated by having a look at its ratio analysis.

Declining Profitability:

The decreasing net success, showing a negative pattern from 2006 to 2007 suggests that expenditures have actually increased far more than the company is able to handle given its current resources. With a long term debt adding to the interest expense, The Recs Project C Financial Analysis is in dire need of an alternative income stream.

Declining Liquidity:

Declining Liquidity: We can see a major decreasing trend in the current ratio too showing a fall in liquidity which is another point of issue for The Recs Project C Financial Analysis particularly as it has a long term debt to pay off. With the current possessions not in a position to pay off the present liabilities, we can see how the company would remain in a major monetary difficulty unless the cash flow improves with extra sources of finance.

Rising Debt to Assets Ratio:

Rising Debt to Possessions Ratio: We might check out the monetary condition of The Recs Project C Financial Analysis even more by looking at the company's overall debt to total assets ratio in appendix 2. Such a circumstance has actually brought The Recs Project C Financial Analysis to a point where its total financial obligation to overall properties ratio has actually increased. An increasing overall financial obligation to overall properties ratio recommends that the danger has actually increased in terms of the company's properties not being enough to cover its total liabilities.

/Financial Feasibility