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Need assistance with consider the following scenario for this assignment: You are an external investor who is considering General Machinery as one of the potential
Need assistance with consider the following scenario for this assignment: You are an external investor who is considering General Machinery as one of the potential companies for investment. Respond to the following in your initial discussion post:
- Discuss the major issues facing the company.
- Recommend what actions the company should take to improve its overall performance, addressing each of profitability, liquidity, gearing, activity, and shareholder return measures.
- In what way does the Statement of Cash Flows help you to interpret the ratios and financial performance of the company?
- What information does ratio analysis provide for meeting the requirements of the case questions?
- Which ratios are the most important, and which ones are of limited value? Justify your choices for the scenario.
- Why do you need to compare:
- The current year ratios with the prior year ratios?
- The ratios of competitors in the same industry or some other benchmark?
- Other than the computations used in ratio analysis, what else is necessary to properly analyze a company for investment?
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