Report for Hebden Design ltd
Balance sheet is a list of the resource that a business owns and the amounts it owes to others.
By looking at the balance sheet of Hebden Design Ltd in 2008 and 2009, first of all, I see the shareholder's funds(net assets) goes down from -3,037 pounds to -4,674 pounds, this is absolutely not good to the company, the reason for this decrease might be the reduction of the profitability. So the value od business is getting less and it might cause to lose shareholders. However, the liquidity of this company has increased because the debtors increases, but it means that the risk of bad debts aslo increases. Also, the whole curent assets still decreases from 447 pounds to 419 pounds because of the reduction of stock, so the profitability still falls. This company is suffering from its profit, so they'd better to do something to increase their profit as soon as possible.
Current ratio
-
The current ratio is a financial ratio that shows the proportion of current
assets to current liabilities. The current ratio is used as an indicator of
a c...
6 years ago
1 comment:
Please adjust your time settings.
Correct all your English mistakes
Post a Comment