Verizon Communications averages fairly close to the industry average in most areas of financial ratios. The biggest discrepancy is in its debt to equity ratio. Debt to equity ratio indicates the feasibility that a company will be able to pay off its’ debts in “the event of a liquidation” (investinganswers.com, 2014). According to investinganswers.com, “a high debt to equity ratio indicates that a company may not be able to generate enough cash to satisfy its debt obligations” (2014). With a debt to equity ratio as above average as Verizon Communications’, the probability that the company will be able to pay off its’ debts if a liquidation was to occur is unlikely.
CanGo has very low profitability ratios, low turnover ratios and a high debt equity ratio. All these demonstrates that it’s in Cango’s best interest to take control of their financial performance, and focus on generating cash for the company, make better use of available resources and ensure that they are able to generate profit. The company should not take more debt and need to focus on how to use their existing resources to generate more cash flow to be able to operate and meet their financial obligations. Under the current operating system debt is increasingly being
I would make an investment in the company’s 5% convertible bonds. Sepracor’s ROA and ROE is above the average and showing that it is profitable; however, the company’s debt to asset ratio is above 1, which means that most of its assets are financed through debt instead of equity. Sepracor would be in trouble if its creditors were to start demanding repayment. C.) To make valid comparisons between Sepracor and Bayer, you would have to compare the rules for fair value under the U.S GAAP and iGAAP. Under IFRS, convertible bonds are separately recorded as liabilities and stockholder’s equities.
Option two is the choice because the $2,716 savings difference in total interest from option two outweighs the $1,043 in interest savings from option one. Here the simulator reveals that loan option one is the correct choice. Loan option one is the best choice to solve the working capital shortfall because even though it has a higher interest rate, there is no prepayment limitation and has a total interest payment of only $32,603 after three months. The Financial Dictionary explains that “prepayment is good for the borrower because it relieves him/her of the debt, but it deprives the lender of interest he/she would have received otherwise” (Financial Dictionary, p. 1,
Another weakness is that this non-profit “invests excess cash in investment grade marketable solutions” (Valley of the Sun United Way, 2013). With this type of investments there are risks involved. The risks and changes could also affect the numbers on the financial
Bonds are not better than GIC(s). Bonds offer lower interest rate, so low that it is better to just invest our money in a TD Savings Account. Mostly investors do not even consider Bonds as there more much better investment opportunities. GIC(s) offer more interest rates, more options and so there is more demand for GIC(s). 7) What is the most popular age group for buying GICs?
Business Accounting SIGNature overall cash flow forecast was positive, which was really good. This is because SIGNature, cash inflows during a period of time are higher than the cash outflows during the same period. This doesn’t necessarily mean profit for the business, but it is mainly due to a careful management of cash inflows and expenditure. Overall SIGNature looks like a viable business with a positive cash flow, however they may face a few cash flow problems. A cash flow problem is when there is an insufficient amount of money to meet the end of month/year bills.
I came to this decision by using the feasibility analysis. The Juniper programs risk is too low to be competitive in the current market. The Palomino project does not have they reward to match the risk involved in the project. The ROI on the Palomino project would be $9000 per year for 5 years. The Stargazer, while it is the highest risk project, offers the most reward for the longest period of time.
The number of sales is stronger than Lowe’s. Lowe’s sales per transaction and sales per store increases faster than Home Depot’s, and Lowe’s had larger debt than Home Depot. Value Line Publishing is in the business of producing financial forecasts to aid individuals and institutions in the analysis of potential investments. The nature of forecasting the future state of companies and their underlying stock prices is inherently difficult for multiple reasons. Evaluating the countless variables that influence stock price movements is a subjective task that requires a combination of understanding of market, economic concepts and the ability to implement those concepts in relation to industry and firm-specific
First and foremost, any major overhaul of a government program will require a lot of money to even carry out any change. Since social security is probably the biggest government funded program, the change to privatization would cost the government nearly 2 trillion dollars. Aside from the major costs to change the current social security system, the idea of investing in the stock market with an individual own private account can also be very risky, especially if they were to invest these funds in the stock market, the individual could very well lose all the money they had saved. Investing one’s retirement funds in the stock market can prove to be a volatile option. Another negative aspect of privatization would be the decentralized nature privatization would be.