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Tuesday, October 15, 2019

Project Essay Example | Topics and Well Written Essays - 1000 words - 1

Project - Essay Example The total long term assets for this company in the year 2010 were recorded to be $86,113,000. As time went on, the company continued improving and by the year 2013, this value was recorded to be $142,431,000. In terms of liabilities, the percentage of liabilities for the company has been recorded to decrease substantially. The company has been able to reduce liabilities to a desirable level. This means that the company is in a position to generate more profit and improve on stocks and products. There is a reason, therefore to conclude that this company has high competitive abilities. There is a reason also to conclude that this company is better off than even its major competitors. In the year 2010, the percentage of total liabilities was more than one hundred percent. This showed that the company had to give out a lot of its earnings in terms of payments. All the same, by the year 2013, the percentage of total liabilities was recorded to have reduced to values less than one hundred percent. This shows that the company had expanded substantially. It shows that the company was in a position to settle various debts and to increase ion size. Using valuation techniques, the company’s growth rate for the present and next year can be estimated. The company grew by more than 108 percent in the year 2010. In the year 2011, the rate of growth was recorded to decrease to 103 percent. In the year 2012, the rate continued to decrease. It went down to 102 percent. We can therefore, prospect that this year’s rate of growth will be 101.5 percent and next year’s rate of growth will be 100 percent. This rate of growth will still ensure that the company develops to the desired level within reasonable time duration. We notice that there is a decreasing trend in the rate of growth for the company. The reason here is because the company is continues increasing every year. An increase in size of the company will imply that a greater total change will be needed t o reflect an increasing fraction on the total change. A substantial growth would therefore still indicate a smaller percentage than the previous due to the increase in size of the company. There will still be satisfactory rates of growth for the company in the next several years. This is according to what the information provided indicates for the three years period. At present, the company is fairly valued. The company does not have extremes of pending debts that have to be paid. This means that all the sales made by the company will contribute positively to the total value of the company. The sales for the company are also high. This will attract majority of investors to buy shares from the company. They will do this because they expect to get high returns from the shares. Once this is the situation, then the company will have enough amount of money to use in all their transactions. The company will be in a position to invest more thus attracting more profit. The value of the comp any at the moment is fair. The company has assets. These assets are fairly huge enough to attract any financial market participant to buying the business. The company cannot be said to be highly valued. We can neither say that the company is undervalued. After reading through all the information provided about the company, we can only say that the company is average valued. The value for the company can still be improved through various tactics that will enable the company

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