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A Financial Ratio Analysis of Global Products Inc. Who Does It and Why Do They Care? A variety of interested parties-including existing and prospective creditors
A Financial Ratio Analysis of Global Products Inc. Who Does It and Why Do They Care? A variety of interested parties-including existing and prospective creditors (such as lenders and suppliers), employees and managers, shareholders, regulators, security analysts, and competitors-conduct the analysis of a business's financial condition and performance. All parties tend to be interested, to some extent, in the same aspects of company performance, but their particular emphasis on a specific facet of the business's condition or performance may vary. The following parties are either currently affiliated with Global Products Inc. (GPI) or are considering becoming so. Based on the following description, (1) answer the question "Who AmI and (2) identify the class of financial ratios that they might be interested in. I work for another organization that is concerned with its own profitability and risk exposures. This means that my ratio analysis of GPI should focus on the following: 1. GPI's ratios are important because they provide insights into its capacity to repay its loans using readily available cash in accordance with the terms of our lending agreements. However, because GPI's capacity to meet this obligation is also a function of (a) its ability to generate earnings and (b) its ability to raise funds in the financial markets, then I must also pay close attention to its GPI's ability to raise additional capital in the financial markets is strongly influenced by GPI management's ability to operate their organization's assets efficiently and effectively. This implies the need to monitor GPI's 2. ratios, respectively. 3. ratios Who Am I? I am
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