Failure of Canadian Solar - Essay Example

Only on StudentShare

Extract of sample
Failure of Canadian Solar

This research aims to evaluate and present North Mountain Engagements LLP, a Hedge fund company which invests in different companies to increase their capital however the company invests in only those companies of which it could improve the earnings significantly and increase the value of the firm by twice. This is the reason the company invests and analyses the company thoroughly before it makes any investment decision. The report analyses one of the companies in the Solar PV industry, Canadian Solar which has been suffering from losses from 2006 and this report investigates whether the company would be able to improve its earnings by changing their strategies. North Mountain Engagements has a higher debt to equity ratio which is defined as total debt of the company in comparison to total equity and higher debt to equity ratio reflects higher risk. Thus, with higher risks shareholders demand higher return so; this is the reason why the North Mountain Engagements LLP requires higher profits. Canadian Solar has been known over the years as CSI meaning Canadian Solar International is suffering from losses despite of the overall demand in the industry has been growing and growing revenues of the company. Canadian Solar has reported total growth of 135.7% in five years from 2004 to 2008 with revenues of the company growing from $9.7 million to $705 million. With several opportunities in the industry, North Mountain Engagements feels that the Canadian Solar can live up to the potential and become an important firm to invest. ...
Download paper


The report analyses a situation where North Mountain Engagements LLP evaluates one of the firms in the international solar PV industry for investment purposes. Recommendations have been given in the report so that Canadian Solar could improve its position in the market and improve its profitability…
Author : ida51

Related Essays

Risk Management on Solar Thermal vs. solar photovotaic system in the Uk
It is a universal knowledge that the burning of oil and natural gas could produce and emit excessive carbon monoxide and carbon dioxide that could trigger global warming. To combat the global climate changes, the UK government decided to gradually shift from the use of non-renewable to renewable energy resources (Committee on Climate Change, 2010). Recently, the Committee on Climate Change announced that the Scottish Government will reduce the carbon gas emission by 3.5% annually between2020 to 2050 (Committee on Climate Change, 2011). As a result of increasing the use of non-renewable energy...
31 pages (7781 words) Dissertation
The benefits of international portfolio investment
There are numerous benefits of internationalizing the portfolio. By internationalizing, the individual or firm will be able to minimize the risk; invest in growing markets thus benefiting from their growth; hedge the prices of goods in the consumption basket; enjoy higher return than expected; diversify investments; and enjoy lower variation of return. High economic growth leads to the higher GDP and high growth level. This attract other investors from other countries in invest in the growing economies. Growing economies are determined by the World Bank as the ones which have average income...
11 pages (2761 words) Essay
Standard Deviation as a Risk Indicator for Investment Purposes
41, 2003). However, over the years, many experts and researchers have also tried to point fingers at this approach trying to highlight its serious shortcomings. This paper is an attempt to capture a glance of that debate and critically analyze the use of standard deviation as a risk indicator for investment purposes. Discussion Standard deviation, in finance, is one of the widely used indicators of risk associated with any given security such as bonds, stocks, properties, commodities and others. Standard deviation allows the investors to predict and anticipate the behaviour of the security in...
4 pages (1004 words) Essay
Solyndra Solar Term Paper
Meanwhile, the program intends to create over 60,000 jobs for the citizens and remains the significant source of jobs for thousands of people. Despite the current bankruptcy, the program is facing, the administration claims that its investment portfolio is still effective and productive. Meanwhile, the Solyndra issues post criticism about the suitability of government in the process of funding technologies and programs. Thus, the paper will evaluate the bankruptcy issues, bailout and analysis of the Solyndra Solar in order to establish its performance in the market. Solyndra Solar Bailout The...
5 pages (1255 words) Term Paper
Usefulness of the annual report for investment decision making purposes
Certain investors have gained knowledge in accountancy and they use the figures provided in annual reports before coming up with an investment decision. Others use information that is related to organization’s financial conditions and does not contain figures but only facts to make investment decisions.
4 pages (1004 words) Essay
Capital structure theory, issues and debates while showing how capital structre choices affects a firms return on investment (RO
In this portion, the MM approach for the capital structure theory has been described, and the assumptions have been stated and criticized. The main objective of this project is to show the importance of the capital structure of a company and its affect on the performance. A detailed analysis of the debt and equity financing has been done in this project from 2010 to 2012. Their implications have been discussed. In this project, it has also been shown how the capital structure of a company determines the business risk. Table of Contents Table of Contents 3 Introduction 4 Business and Financial...
6 pages (1506 words) Research Paper
Issues in accounting for R&D investment - a perspective from the pharmaceutical industry
The companies operating in the pharmaceutical industry spend millions of dollars each year in the research and development expenditure so that they are able to devise new methods and medicine that are able to cure and provide sustenance to the human body from deadly diseases. From the financial perspective, the research and development expenditure forms an integral part of the financial statements of any pharmaceutical company. Over the years, a debate has been going between the financial managers and the economists regarding the fact pertaining to the accounting treatment of the research and...
60 pages (15060 words) Dissertation
Got a tricky question? Receive an answer from students like you! Try us!