Monday, April 22, 2019
Video Business Case Report Study Example | Topics and Well Written Essays - 1500 words
Video Business Report - Case reckon ExampleThe caller-up should look at astir(p) the liquidity linear perspective. It can be done natural reducing the operating cost. It can improve the valuation of the caller-out by increase the revenue of the comp whatsoever. necessitate can improve the net profitability by reducing the operating cost and overhead. This pull up stakes improve the employment efficient of the phoner. It can decrease the debt equity ratio by in increase the profitability. It volition join on the cash position ultimately and lead to summation of liquidity position of the firm. The company can increase the legitimate ratio by reducing the operating cost. It will ensure that the production efficiency of the company improves. This will have a direct impact on the profitability also. The board now wants to suffer a sustainable strategy so that it can avid the repeat of the global financial crisis in 2008. For this the company should increase the core equity capital and lower its debt ratio. With more debt ratio the company will be in obligation to pay off their dues else it can go bankrupt. The company tries to lower its prices of the products and reinvest its shekels back to the company instead of giving dividends to the plowholders. It will help the company in maintaining liquidity position so that they dont have to face cash crunch when credit in the commercialize dries up. Introduction acQuire engine room Solutions is an Australian-based company which develops and delivers Geoscientific Information Management System (GIMS) called acQuire. acQuire Technology solutions is facing many issues in its operation. The profitability of the company is decreasing from fiscal year 2012 to 2013. The forecasted profit of the company is also decreasing. The main reason for decrease in profitability is the increase in operating expenses. therefrom the company is not being able to maintain its cost down. The current ratio of the company is in creasing which shows that the companys liquidity position is improving. Share price of the company has decreased from 2012 to 2013. This is because the net profit of the company is decreasing. The share profit of the company is also decreasing. There has been huge decrease in share profit from $ 792,551 to $ 319769. It is also predicted that the share profit of the company is also decreasing. The liquidity position of the firm is improving while the debt ratio of the company is decreasing. The company is using its cash balance to pay off its current liabilities. Foreign exchange gain of the company for the financial year 2013 was $ 26, 151 as compared to $ 93,960 for the financial year 2012. It indicates sufficient drop in profit for the company. Again it has been projected that the company will not earn any foreign exchange gains or losses. Discussion Decision Criteria acQuire Technologies Solution is facing a bit of problem. The share of price of the company is decreasing becaus e of loss of profitability. The current asset ratio of the company is increasing from 1.12 to 1.26. The company should look at improving the current ratio. Debt ratio of the company has decreased from 1.74 to 1.09. The ideal treasure of this debt ratio is 0.5. This shows that the company has high debt ratio. The company should look at decreasing the debt ratio. The profitability position of the company is decreasing. The net profit margin of the company has decreased from 11.3 % in FY 2012 to 4.8% in FY 2103. Again it is estimated that the ratio will further decrease by 2.9% in FY
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