Financial Case Analysis - Ratio Analysis

The financial symmetrys used in this problem show that Bethesda exploit has some work ahead of them. There is substantial personal manner of life for improvement for some of the proportionalitys involved. A more positive synopsis would require symmetry information from the mining fabrication as a whole but a micro centering is provided below. The authentic ratio is low. Bethesda Minings current ratios over the twain old age given indicate negative send away working capital. short bullion to cover daily expenses is non an attractive site in any industry. One compute in particular proposition that is decreasing the current ratio is accounts payable. This item is rather senior tall and is affecting the companys short-run liquidity. On a bright note, the current ratio improve 22.3% year-to-year so focus appears to be in the correct place. Removing inventorying levels from the equation yields the quick ratio, which is significantly slight than the current ratio for Bethesda Mining. This decrease indicates that part of the problem may be fasten into excessive inventory levels. This, coupled with the spirited accounts payable values, is damage the current ratio. The quick ratio draws economic aid to this as its value is less than half that of the current ratio. The property ratio is a very straightforward calculation. In Bethesda Minings case, it is clearly saw there is not enough funds sexual proportion to current liabilities.

Taking the three ratios discussed so far into account, it could be theorized that Bethesda Mining is purchasing inventory at a high level th an sales are occurring. The accounts payable! accounts (though decreasing in 2003) are still too high when compared to the available cash on hand. The debt-equity, equity multiplier, and total debt ratios all lead to synonymic conclusions. Bethesda Mining is utilizing a nearly 50/50 debt-equity go on to fund assets. 2003 figures show that the firm is... If you want to pass water a full essay, order it on our website: BestEssayCheap.com

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