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SUNRISE SENIOR LIVING (SRZ)....FIRM THAT'S NOT WORTHY INVESTMENT
Finance & Accounting
Pages 6 (1506 words)
SUNRISE SENIOR LIVING (SRZ)....FIRM THAT'S NOT WORTHY INVESTMENT Executive Summary This paper is about an investment analysis of an organization. The name of the organization is Sunrise Senior Living Corporation. It is a US based service firm that provides senior care service in US and many other countries like UK, Canada etc.
The company operates in a high competitive market in US where Assisted Living Concepts Inc and Brookdale Senior Living Inc are two major competitors of it. Financial ratio analysis has shown that company is not at all profitable in terms of major profitability ratios. Though it has quite good asset turnover but capital structure of the company is very much unstable. Liability holds 90% of the totals assets and 10 times more than equity capital. Therefore, it operates with a huge amount of debt which indicates high possibility of bankruptcy in near future. By projecting key financial parameters for next financial year, it is identified that net profit would remain negative in next financial year. Profitability of the company would also remain very much weak compared to its competitors. The company is also much behind in terms of market share, profitability and operating efficiency than its competitors. From, detailed analysis of the company in financial and non financial perspective, it can be recommend that currently the company is not investment worthy. Introduction This paper deal with detailed analysis of Sunrise Senior Living Corporation, a US based multinational senior care service organization. ...
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