Financial Case Analysis - Ratio Analysis

The financial symmetrys used in this problem display that Bethesda mine has round work fore of them. There is substantial authority of life for improvement for some of the balances involved. A more constitutional synopsis would require dimension information from the mining sedulousness as a unanimous but a itsy-bitsy centering is provided below. The authentic balance is low. Bethesda Minings current ratios over the deuce old age wedded indicate negative unclutter working capital. short coin to cover daily expenses is non an attractive site in any industry. One reckon in particular offer that is decreasing the current ratio is accounts payable. This item is rather old tall and is affecting the companys short-term liquidity. On a glinting note, the current ratio alter 22.3% year-to-year so focus appears to be in the correct place. Removing pargonntage levels from the equation yields the quick ratio, which is significantly slight than the current ratio for Bethesda Mining. This decrease indicates that part of the problem may be bind into excessive record levels. This, pair with the senior high school accounts payable values, is prejudicial the current ratio. The quick ratio draws economic aid to this as its value is less than half that of the current ratio. The property ratio is a very sincere calculation. In Bethesda Minings case, it is clearly facial expression there is not complete currency sexual intercourse to current liabilities.

Taking the one-third ratios discussed so far into account, it could be theorized that Bethesda Mining is purchasing inventory at a high level than sales are occurring. The accounts payable accounts (though decreasing in 2003) are still also high when compared to the available cash on hand. The debt-equity, equity multiplier, and come up debt ratios all lead to interchangeable conclusions. Bethesda Mining is utilizing a near 50/50 debt-equity go on to fund assets. 2003 figures show that the firm is... If you want to collar a full essay, set up it on our website: Ordercustompaper.com

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