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Economic Environment and Financial Status of a Company - Essay Example
Finance & Accounting
Pages 9 (2259 words)
Finance Table of Contents Introduction 3 Economic Environment 3 Financial Status 4 Recommendations 10 Conclusion 11 References 12 Bibliography 12 Introduction Little World Beverages is a group of companies based in Australia and indulging basically in the brewery, packaging and hospitality industry of the nation…
In addition, the company operates its hospitality business from Fremantle, Healesville and Melbourne. The company has some subsidiaries as well such as Little Creatures Breweries Pvt. Ltd., which is a popular name in Australia. Another subsidiary assisting the group in its packaging and hospitality vertical is Fremantle Harbour Properties Pvt. Ltd., as recorded last on June 30, 2006 (Reuters, 2011). The present paper aims to assess the credibility of the company during 2009 and 2010, based on which it might be appraised to the position of a suitable borrower. Credibility of a company could be decided through an evaluation of its financial performance over the years. Financial evaluation on the other hand, could be made on the basis of the four groups of ratios namely, Liquidity, Efficiency, Activity and Profitability. In case that the company is found to fare well in terms of the above factors, it might be regarded as a suitable borrower. In addition, an assessment of the economic environment in which the bank is functioning also needs to be assessed for the purpose. Economic Environment Strengths The economic environment of Little World Beverages Group might be regarded as having improved from the records of financial year 2008 to that in the financial year 2009. It experienced growth in terms of total operating revenues as well as net profit ratios by 18% and 51% respectively over the years. ...
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