Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Company capacity to continue trading
Given the preceding discussion it is unlikely that the business can continue in its current form. The trading performance is clearly very strong when measured in terms of its sales capacity and growth. This point outs a good customer base and the ability to service customer needs. The markets the company serves propose a long term future for its product or service. It is probable that the company's cost base will be overwhelmed by interest charges which are resulting in reduced PBT/Sales ratios over the period in spite of significant sales growth. If that is the situation then it may well be that the underlying trading profitability is good. If it isn't found to be good after further investigation then additional action may need to be taken. For instance if low profitability is due to aggressive pricing then an investigation into alternative marketing strategies may be appropriate. Additionally given the significant growth it may now be timely to look at the customer base and withdraw service from those customers who are either unprofitable or otherwise difficult (late payers for example). Product mix might be gainfully assessed to focus on higher margin sales activities and to decrease effort on lower margin activities. A business plan recitation the customer base and the strategy for greater profitability will underpin any bid for a reorganisation of AIS Ltd's finances.
Bank support is critical to long term survival if the debt is in the form of bank related lending. Substitute sources of finance should also be considered particularly in the form of equity which is required to re-balance the business.
What is a financial ratio? A financial ratio is a number that convey the value of one financial variable relative to another. Put more easily, a financial ratio is the final
Valuation The process of finding out the current value of an asset or company is known as valuation. There are various techniques that can be utilized to find value, few are su
Q.What is a Hedge Fund? A Hedge Fund is a fund established by one or else several partners with net worth of at least $1 million (although this maybe falling). It uses long as
Contractual savings institutions Contractual savings institutions obtain funds at periodic intervals on a contractual basis. The industry is classified into two main groups ins
Which type of insurance company generally takes on the greater risks: a life insurance company or a property and casualty insurance company? The risks protected against by cas
Describe the general pattern of cash flows from a bond with a positive coupon rate. Cash flows as of a bond with a positive coupon rate consist of periodic interest payments an
Why do investors invest the lion’s share of their funds in domestic securities? Answer: Investors invest greatly in their domestic securities since there are major barriers to in
What is Control risk That material misstatement could take place and not be detected, or prevented on a timely basis, by accounting and internal control systems. All audits
Question 1: i) Performance budgeting is the best budgeting system. Discuss. ii) Why there is a need for implementing MTEF in the Mauritian Public Sector? Questi
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd