Discussion 1 Week 3 Researching Financial Information - Assignment Example

ANAYLSIS OF COMAPANIES FINACIAL POSTION Affliation) Company XML 56 R68.htm IDEA: XBRL DOCUMENT Analysis of one company’s financial position and determines whether or not the stocks potential will rise, remain stable, or decrease in value. Determine whether you would invest in it or not at this time. The companys sales growth over the last 12 months have been stable and they were an increase and a decrease at different periods of the year. The profit growth of this company is predictable. Over the last three years, the companys total revenue was on the rise and they is no sign of this decreasing.

The company total asset has been stable and the rate of depreciation has been stagnant. The cost of operation has been relatively stable in contrast to the increase in total revenue. I would invest in this company with the current financial position. This is because the company dynamic is upwards and they are no indication to show this is likely to change. Investing in young company before they become big has an added advantage as one is able to gain from its growth.2. Assessment of how profitable the company has been over the past 5 years and determine how you would advise the company about its future profitability potential.

The company profit curve has been on the rise although sometimes the curve drops down than the previous financial year. The company has performed well in the universal economic hard times and has maintained its overall total revenue. The total expenditure has been regulated and tend to as low as possible. This is as a result of effective managerial skills. I would give an advice that, this companys future is so bright and the trend that it has portrayed over the past few years has proven this.

The management of the company is effective in cutting down the cost of running. This should go on to see the company gain more ( Orhangazi, 2008).ReferenceGomez P.-Y. & Korine H.,(2008), Entrepreneurs and Democracy: A political Theory of Corporate Governance.Cambridge university Press: Cambridge UKOrhangazi, O (2008). Financialization and the US Economy.Edward Elgar Publishing.“The Framework for the Preparation and Presentation of Financial Statements"www.International Accounting Standards Board.

com Accessed 20 oct 2012.