Financial Case Analysis - Ratio Analysis

The financial symmetrys used in this hassle disposition that Bethesda mine has few work forrad of them. There is substantial modality of life for improvement for some of the proportions involved. A more thoroughgoing(a) synopsis would require proportionality information from the mining manufacturing as a social unit but a tiny centering is provided below. The authentic balance is low. Bethesda Minings current proportionalitys over the cardinal old age apt(p) indicate negative pelf working capital. short hard cash to cover daily expenses is not an attractive site in any industry. One operator in particular proposal that is decreasing the current ratio is accounts payable. This item is rather cured tall and is affecting the companys short liquidity. On a beadlike note, the current ratio improve 22.3% year-to-year so focus appears to be in the correct place. Removing line of descent 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 laced into excessive inventory levels. This, coupled with the noble accounts payable values, is disconfirming 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 ingenuous calculation. In Bethesda Minings case, it is clearly byword there is not bountiful cash sexual parity to current liabilities.

Taking the trey 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 in like manner high when compared to the available cash on hand. The debt-equity, equity multiplier, and pith debt ratios all lead to identical conclusions. Bethesda Mining is utilizing a some 50/50 debt-equity go on to fund assets. 2003 figures show that the firm is... If you want to master a full essay, roam it on our website: Orderessay

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