In this particular situation while Georgia Power is not facing a liquidity crisis, their level of short-term liquidity is lower than it should be.
Analysis
When you put all of the different pieces together, it is clear that there they are saying that Georgia Power is good long-term investment. This can be seen by the 4.7% return on equity that they are delivering to shareholders. The total amounts of debt are reasonable with the company having a total debt ratio of .654. This is below the number of 1.0, which indicates that the company has more than enough assets to cover any kind of liabilities. However, when you look a little further, the short-term indicators such as: the quick ratio; shows a different picture. In this particular aspect there was a reading of .61. What makes this number so troubling is the fact that it is below 1.0, indicating that the company's short-term liquidity position is its greatest weakness. Yet, when you place the current number into context, while it may be low it is not enough to force any kind of liquidity crisis for the company over the next few months. Together, all of these different indicators tell investors that Georgia Power is a good long-term investment. However, there will be some short-term challenges that the company is going through because of the lower short-term liquidity position. Beyond this factor, the company has all signs that it will continue to provide investors with consistent growth and income.
Clearly, Georgia Power is a good long-term investment. This is because of: the return on equity, the total debt ratio and the quick ratio. The reason why this is important is: due to the fact that many companies have been facing liquidity issues, over the last two years. To determine if Georgia Power is facing such a fate requires that you examine these different...
Financial Analysis of a Coach Inc Financial Analysis Case Study: Assessing a Company's Future Financial Health Financial analysis of a Coach Inc. Leather industry is a lucrative area of investment that entails manufacturing of products from leather. Coach Inc. is one of the many companies that work along this line of business. Coach Inc. started from manufacturing small leather goods in 1941 and expanded to produce in bulk of variety of products from
Financial Statement AnalysisFinancial statement analysis refers to developing and analyzing a particular company�s financial statements to help with the decision-making processes. It is also essential since it helps external stakeholders such as investors understand its overall condition and evaluate the business value and financial performance. Internally, it is used as a tool to monitor and manage the organization�s finances. A company�s financial statements record essential financial data on all organization�s
00). This is below the EU, where they have a rating of 42 or a PPP of $32,500.00. (Czech Republic 2010) 1 When you compare the two numbers, the purchasing power is lower in the Czech Republic in comparison with the EU. This means, that labor costs are much lower in relation to the rest of Europe. When you put this together with the increases in the GDP over the
In an attempt to compete Wii, Microsoft put together all the features from its Xbox 360 gaming platform and offered the result in the shape of a bundle of two games at the price of $279.99 in which the following were included: five family-friendly games, a wireless controller, a high-definition multimedia interface (HDMI) connection enabling high-definition output (if desired) and 256 MB of memory, useful for storing games and
Constitution gave Congress the power of legislation. In fact, its major function is to make laws. Essentially, Congress converts public will into public policy by way of law. The Constitution provides some rules to which Congress must adhere throughout the legislative process however; over the years there have been additions and modifications to the procedure. Currently, there is debate over how to reform the legislative process. The general legislative process is
working with a multinational team are turning out to be more and more obvious in the modern, linked world. However, a job like the one I work for have not caught up with this concept, thus causing a problem when it comes to teamwork. Historically, my workplace was one of the most tradition-bound corporations on the planet. It was well-known for its written and spoken rules as its no-discharge
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now