Prepared case analysis of a single case Study Example | Topics and Well Written Essays - 1250 words

Prepared analysis of a exclusive - Case Study ExampleThe increased size of the caller-out has been one of the components that have created the companys strong competitive platform.However, the sales of the season were below the expectations. The company made substantial losses referable to the low returns. The management reacted to the situation by selling 15 stores to raise approximately cash. The management of the company has provided both income statement and the statement of financial position to assist in assessing the actual chore face up by the organization. Based on the companys income statement, the last-place sales have steadily been increase since the year 2006 to the most current year 2011. Similar trend applies to the earnings before interest and impose and the interlocking income.However, as at the end of 2011, both earnings before interest and tax and the net income for the company sharply decreased to a negative find. In the year 2010, the EBIT stood at $ 31 2 millions, but dropped to $ -9 million. Similarly, the net income during the financial period 2010 was $ 189 million but dropped to $ -49 million. Surprisingly, the net sales of the year2010 and 2011 were $ 3,314 million and $ 3,351 million, indicating an increase in the figure between the two periods. Therefore, the main questions in the case study are as follows first, what seems to be the problem with the Hobby Horse company? Second, are any issues to be addressed revealed by the companys financial statement? In order to answer the second question and probably find some leads to address the second, the following financial ratios have been conducted for a four year period (2008-2011) gearing ratios, positivity ratios, and liquidity ratios forDebt/equity - ratio indicates the proportion of fixed charge capital in the capital coordinate of a firm. Concerning Hobby Horse Company, the ratios from 2008 to 2011 are 0.6195, 0.4958, 0.2193 and 0.349 respectively. The ratio interpretati on for the