Capital asset

Capital The capital position of the Licensee appears satisfactory. As of December 31, 2015, the Licensee reported $94,771,851 in capital in relation to total assets of $611,614,947. This reflects a capital to asset ratio of 15.50%. The capital to assets ratio has increased slightly from 12.10% as of December 31,…

Many organizations create budgets on an annual basis to outline the predicted desires of each branch inside the enterprise. Using the yearly budget technique additionally, this limits some time that corporations spend developing and coping with capital resources. Although large companies might also have employed accountants or different experts to create the business budget, small enterprise proprietors are normally accountable to finish this feature themselves (Weingartner,…

that must be considered. There are decisions that need to be made determining whether enough capital can be raised. The economic impact of the transition in some cases will be the deciding factor in this determination. There are both advantages and disadvantages to either side and companies must factor in all characteristics when making such an integral business decision. Whether it involves obtaining capital or complying with laws and regulations; these things must be determined prior to…

Liquidity is used to describe how easy it is to convert assets to cash. Capital structure can be described as a firm’s debt-to-equity ratio, and it tells how risky a company is. Companies who are associated with greater capital structure pose a bigger risk to investors, but the risk can be the primary source of the company’s growth. Profitability ratios are used to determine the company’s ability…

creating, through financial engineering, an illiquid asset into a security. Subprime Loans are examples of illiquid assets. During the process, loans are put together as a pool, held as the collateral of securitization and then transformed into securities. The common knowledge indicated that leverage was necessarily and directly correlated with improving in returns. Nonetheless, the theories…

financial manager is to provide relevant financial information to decision-making executives for the short and long term goals of the company. For example, the financial manager is responsible for generating forecast reports of revenues, including capital budgets and cash…

in fixed asset as a component of total asset. Tangible assets are broadly accepted determinants of capital structure because fixed assets provide security to the capital provider by directing a claim against capital erosion. Information asymmetry between borrowers and firms increases the agency cost of debt which can be reduced by using adequate tangible assets that may serve as collateral to issue debt (Jensen & Meckling, 1976). This is obvious because firms with greater tangible assets are…

analysis can serve as a tool to understand the relationship between quantities, and can be a useful benchmark in the comparison of two or more organizations within a common industry (Faello, 2015). The use of these ratios can determine factors such as asset and debt management, as well as calculating return on equity. By using public source documents, such as a firm’s income statement and balance sheet, a perceptive individual should be able to decipher the data into an organized format, which…

this company and continue investing in it. 3|Page 2. Liquidity and Capital Structure 2.1. SWOT Analysis  Strengths   Cyclermate has a long establishment time and reputation in producing traditional bike. The company has asset of a large piece of land worth £ 208,000 (included £ 48,000 of factory and £ 160,000 of unused land).  Weaknesses   Cyclermate has very few current assets and more non-current asset. This reduces the liquidity of money. There is a great liability that is…

The efficiency ratios include Average inventories turnover period ratio, Average settlement period for trade receivables ratio, Average settlement period for trade payables ratio, Sales revenue to capital employed ratio and Sales revenue per employee ratio. According to the news, the Compton Bike company is trying to increase the efficiency by invest 18 months in training its brazers. In my opinion, the level of efficiency and the efficiency ratios…