Got a tricky question? Receive an answer from students like you! Try us!

SUNRISE SENIOR LIVING (SRZ)....FIRM THAT'S NOT WORTHY INVESTMENT - Research Paper Example

Only on StudentShare
Masters
Research Paper
Finance & Accounting
Pages 6 (1506 words)

Summary

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…

Extract of sample
SUNRISE SENIOR LIVING (SRZ)....FIRM THAT'S NOT WORTHY INVESTMENT

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. ...
Download paper
Not exactly what you need?

Related Essays

Funding a New Biotechnology Firm
This essay stresses that the decision to start any business is exciting and encouraging to the growth of the economy of any country. However, many entrepreneurs blow up their dreams of starting up businesses due to lack of finances to develop their ideas. It is with this view that the above paper has offered the various ways the entrepreneurs can solicit for funds. The prospects of acquiring funds from any of the proposed funds strategy are exciting but what is required is caution in whatever choice one takes. Recommending any particular funds strategy may deem inconsiderate but making a…
4 pages (1004 words)
Investment Enhancement
This will help business people have adequate international portfolio diversification. Moreover, shareholders yearning to diversify a precarious investment, for example, stocks in a developing market, via international diversification, would be more profitable in areas which are negatively correlated, as well (Markowitz, 1952). Nations with stock prices moving in a different direction are perceived to be negatively correlated, while states with stock prices moving in a similar direction are perceived to be positively correlated. The principle of diversification stipulates that a portfolio…
4 pages (1004 words)
Basic Senior Year Financial Questions
The cost of capital and the tax rate are 12% and 30% respectively. Required: The net present value (NPV) of the investment Solution: (a) Project appraisal $ ‘000’ Year 0 1 2 3 4 5 Inflows - 800 750 900 1,200 1,100 Outflows - (65) (80) (50) (55) (70) Depreciation - (280) (280) (280) (280) (280) Inflow before tax - 455 390 670 865 750 Less tax @ 30% - (136.5) (117) (201) (259.5) (225) + dep. Back - 280 280 280 280 280 Cash flows - 598.5 553 749 885.5 805 I0 (1,400) - - - - - (1,400 598.5 553 749 885.5 805 PVIF 12%n 1.000 0.893 0.797 0.712 0.636 0.567 P.V (1,400) 534.5 440.7 533.3 563.2 456.4…
6 pages (1506 words)
Investment Appraisal
Investment Appraisal …
9 pages (2259 words)
investment projects
That is why even projects which had a positive net present value where not considered for the purpose of investment. The annual investment process at New Heritage involved personnel from all the three divisions of the company who presented their proposals for projects which can be considered for the purpose of investment. The proposals included projects which can be considered for the purpose of investment. With the growth of the company, initiatives were taken to decentralize some of the project approval process and hence increase spending authority at the division level. However, some…
7 pages (1757 words)
Financial Investment
Ratio analysis and share price analyses are 2 most important and commonly used tools to analyze the financial position of a particular stock. A proper fundamental and technical analysis generally provides a basic idea regarding these aspects and helps investors make informed investment decisions. Generally the intrinsic value of the stock is determined from the financial facts given the annual report of the company using free-cash flows and it is compared to the current market price of the stock. When the stock is found to be undervalued then it provides an opportunity for the investor to buy…
12 pages (3012 words)
Financial Investment
The principles of time value of money and learning its techniques are the most important concepts for the study and application of finance in general. The concept of interest is divided between simple and compound interest. Simple interest is calculated only by taking into consideration the beginning principal. For instance, if an individual invested $1,000 dollars in a savings account at 5% annual interest, the expected return after one year would amount to a $50 gain on investment. The concept of compound interest unlike simple interest which only takes into consideration the interest return…
5 pages (1255 words)