You are tasked with analyzing the last four years of accounts of a Essay

You are tasked with analyzing the last four courses of accounts of a global mining company - Essay ExampleGraph 1 shows the companys liquidity proportionalitys oer the four-year period.All the point ratios are less than one, and this means that performance of the company in forethought of short-run assets and liabilities is poor. In addition, current ratio and quick ratio have a declining trend, and this means that the giving medications management of liquidity worsened over the period. The two ratios, however improved from year 1 to year 2 before assuming the decreasing trend. Cash ratio reported an increasing trend tho it was too low, with a maximum value of only 0.15. Correlation analysis of the ratios identifies a positive correlation coefficient between current ratio and quick ratio and a negative correlation between bullion ratio and both current and quick ratio. Table 1 shows the correlation coefficients.Long-term solvency ratios are indicators of managements efficienc y in long-term management of resources. The ratios compare internal and external funding that an organization has and are inversely proportional to management efficiency (Thukaram 2007, p. 90). Times interest earned ration and capital reportage ratios are however inversely proportional to management efficiency (Mayes & Shank 2011, p. 118).From the graph, total debt ratio is low, over the entire period, and debt to equity ratio and equity multiplier ratio falls to lower value by year 1. The three ratios then decreases with time, indicating improved performance, which can be forecasted. Times-interest ratio and cash coverage ratio also show an improvement trend in performance because of their increasing trends over the period. transaction in management of long-term solvency is therefore strong and show improvement possibility.Asset dollar volume is other performance indicator that shows asset utilization in an organization. Inventory turnover, receivable turnover, and total asset turnover measures are directly proportional to management efficiency while days of realization and capital impregnation are inversely