Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Company capacity to continue trading
Given the preceding discussion it is unlikely that the business can continue in its current form. The trading performance is clearly very strong when measured in terms of its sales capacity and growth. This point outs a good customer base and the ability to service customer needs. The markets the company serves propose a long term future for its product or service. It is probable that the company's cost base will be overwhelmed by interest charges which are resulting in reduced PBT/Sales ratios over the period in spite of significant sales growth. If that is the situation then it may well be that the underlying trading profitability is good. If it isn't found to be good after further investigation then additional action may need to be taken. For instance if low profitability is due to aggressive pricing then an investigation into alternative marketing strategies may be appropriate. Additionally given the significant growth it may now be timely to look at the customer base and withdraw service from those customers who are either unprofitable or otherwise difficult (late payers for example). Product mix might be gainfully assessed to focus on higher margin sales activities and to decrease effort on lower margin activities. A business plan recitation the customer base and the strategy for greater profitability will underpin any bid for a reorganisation of AIS Ltd's finances.
Bank support is critical to long term survival if the debt is in the form of bank related lending. Substitute sources of finance should also be considered particularly in the form of equity which is required to re-balance the business.
Q. Describes the Concept of Time value of Money? 'Time value of money' signifies that the value of a unit of money is different in different time periods. The worth of a sum of
how do we measure equity in an orgarnisation
Strategies of Hedge Funds: Hedge funds use a range of different strategies, and each fund manager can argue that he or she is unique and could not be compared to other manager
Put This is an agreement which is allowing a holder of privacies to sell them back to the issuer at a specified amount during a specified time interval. This technique protects
1. Suppose a firm's tax rate is 35%. What affect would a $10 million operating expense have on this year's earnings? What effect would it have on next year's earnings? 2. What
The price-yield relationship of a non-callable or a non-putable bond is convex because price and yield are inversely proportional. Figure 1 shows the price-yield
Product Advantages: A firm that has developed a reputation for superior products in the domestic market may find acceptance from the foreign consumers as well. Hence, such firm
All other things held constant, how would the market price of a bond be affected if coupon interest payments were made semiannually instead of annually? The majority of bonds i
Q. What do you understand by Business cycle? Business cycle: business cycle refers to the alternate expansion and contraction in the general business activity. in a period of t
Long-Term Solvency Ratios (Financial Leverage Ratios) Debt-Equity Ratio = Total Debt / Total Equity à It is a measure of a company's debt utilization. It gives the ex
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd