The summarized findings of the financial analysis are outlined below:
1. Sales level of the company has been on a declining trend and the company’s sales are reduced to $180 million from $517 million.
2. For investors, both earning per share as well as dividend payout ratio, have shown very disgusting results.
3. The profitability position of the company is quite disappointing as the company incurred losses in first four years, but generated some profits in 2011.
4. Total Assets of the company have been on a declining trend as well, but there is a slight improvement in 2011.
5. Leverage position of the company has reflected negative results such that debt ratio has increased from 50% to 60% and the level of debt is on an increasing trend which is an alarming sign for the company.
6. Equity position of the company has also shown some bitter results such that it is reduced by 6 times from 2007.
7. Operating cash flows have remained quite volatile during last five years.
8. Free cash flows to firm are predicted to be increased by 10% every year.
9. The risk position of the company is not good at all and the company still in high risk zone.
10. A discount rate of 35% is used to discount the free cash flows.
Nautilus Inc. is one of the constituent of NASDAQ member companies. ...