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Annual report analysis - Essay Example
ans 2 The overall condition of liquidity position of the company is looking quite suitable and stable. Firm is looking completely in situation to solve all of its problems in the form of any kind of crisis. All of these three ratios indicate generally if firm have to pay off its liabilities in any kind of contingency, then what would be its response to the demands of its shareholders…
It shows that company was not performing as good as it is performing in the current year and it is coming back to its real best.
Ans 3 Working capital is basically is a ratio which indicates after deducting liabilities from its assets mean current assets. So it is originally the sign of strength of the company. If any company has large enough working capital after paying off all of its liabilities that means it is still in position to run its operations. Working capital and current ratio are directly related because both indicate the strength of the firm after paying off its liabilities. Yes, definitely because the larger the working capital firm has after deducting its liabilities the larger the chances that it can pay off its liabilities gracefully.
Ans 8 After overall analysis of the firm, figures suggest that firm is not doing well enough work in the form of its profitability area. The firm is not enough to eliminate its expenses and that is why all of its ratios represent very poor figure of their profitability scenario. Almost all the ratios are giving a very poor picture of the company's standing in the industry. It has been the situation in all three years and they are still not putting effective to overcome this problem.
ans 11 After analyzing the company's debt and debt equity ra ...