External Financing

• evaluate the financial environment at Genesis Energy by using ratio analysis of the company.
• Explain of a 3-year ratio trend analysis for each of the five listed below. Compare these results to the industry averages. What do the results tell you?

1)Liquidity- Current assets / Current liabilities, $1,000 / $310 = Ratio: 3.2, Ind Avg: 4.2, Comment: Poor

2)Asset Management- Inventory Turnover: Inventory turnover Sales / Inventories, $3,000/ $615 = Ratio: 4.9, Ind Avg: 9.0, Comment: Poor\

3)Debt Management- Debt ratio: Total liabilities / Total assets, $1,064 / $2,000 = Ratio: 53.2%, Ind Avg: 40.0%, Comment: High (risky)

4)Profitability- Profit margin on sales: Net income available to common stockholders / Sales, $113.5 / $3,000 = Ratio: 3.8%, Ind Avg: 5.0%, Comment: Poor

5)Market Value- Price/earnings (P/E): Price per share / Earnings per share, $23.00 / $2.27 = Ratio: 10.1, Ind Avg: 12.5, Comment: Low

• three specific options that are available to Genesis Energy for obtaining needed capital.
• two ways Genesis Energy can improve its strategy.
• what specific macroeconomic factors are likely to affect genesis, i.e., inflation, interest rates, exchange rates etc.
• brief country risk assessment and most likely problems a company like Genesis Energy will confront when contemplating an international expansion. least risky approach to get their product/service to the country you have chosen? Which entry mode is the riskiest?

3-4 in Word format. 6-8-slide PowerPoint w/notes and ref