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Words: | Submitted: Mon Jun 19 2006
... have been increasing also the operating ratio is increasing. As per the investment statistics of the osu plc share price is falling i.e. From rs.230/- in year 2001 to rs.85/- in year 2002.low share price means less credit worthiness of the company in the market and again it will lead to less investment in shares, less availability of funds, more of borrowed funds, more risk involved in business. So current status of the company is more risk involved, as debts are more than the shareholders funds. And also liquidity position is also not so good, net profit is decreasing, working capital is nil, and costs are increasing. So company is facing financial distress. 2. Liquidity ratios: These ratios measure the ability of the firm to meets it short term obligations and reflect the short-term financial strength. It indicates the capacity of the business to pay its current liabilities as when ...
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