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Internal Analysis of Abacus International Introduction Abacus Business Solutions (ABS) provides technology solutions and systems integration to the hospitality industry (Abacus, “About Abacus”). It offers credit cards, hand held computers, mobile payment, property management, enterprise applications, Oracle Applications, Oracle Tools and Technology, E-Commerce, Reporting and Data warehousing, operational, delivery solutions and management services.
Financial Resources and Analysis The financial resource of a company is the money available to the company in the form of cash, cash equivalents, credit lines and liquid securities. An entrepreneur needs to have sufficient amount of cash to operate a business successfully. Analytical tools like ratio analysis determine the profitability and business risks of the company. The management of the company needs to analyze the company’s profitability, business risks and financial condition to take a decision related with the company (Abacus, “Management”). The company had generated sales of $12 million in the financial year 2011. The current ratio signifies the company’s ability to meet the short term obligations of the company and a current ratio between 1.5 and 3.0 signifies that the company is in a healthy condition (Brigham, and Houston 87). The current ratio of ABS is 0.77 and 1.12 in the financial year 2011 and 2012 respectively. The company’s ability to meet its short term liabilities was very poor in the year 2011, however the company’s current ratio strengthened in the year 2012. ...
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