Future Cash Needs and Business
One of the critical functions perfor
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One of the critical functions performed within a company is determining the need for future cash and possible sources of those needs. Such a projection requires that the company have a thorough understanding of its operations and its market prospects, as well as a clear understanding of its current financial position. Potential investors and others (including creditors and current shareholders) also have an interest in how the company is doing and where its future funds are coming from. For companies that are going through extreme growth, it is possible to grow faster than the financial structure can expand. For this reason, understanding the financial position of the company is critical to its long-term success. This research considers one multinational company, Bombardier, and its financial situation through the use of financial and ratio analysis.Bombardier is a Canadian-based company with operations throughout the world. The current company came into existence through the merger of Bombardier Limited and MLW-Worthington Limited in 1976. Bombardier Limited manufactured snow tractors and snowmobiles, while MLW-Worthington manufactured locomotives. The company, renamed Bombardier, Incorporated in 1978, issued its initial public offering on Canadian stock exchanges in 1981, and has continued to grow through acquisitions, including the acquisition of Learjet in 1990. The United States and Mexico accounted for 47 percent of the company's sal
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A/R
358.4
449
667
-20%
-33%
Inventory
3455.2
2595
1914
33%
36%
Other Current Assets
1811.4
1456
1121
24%
30%
Current Assets
6521
5037
4128
29%
22%
PPE (gross)
1200
1142
932
5%
23%
PPE (net)
1200
1142
932
5%
23%
Other
230
214
402
7%
-47%
Total Assets
7950
6393
5462
24%
17%
A/P
2124.6
1875
1509
13%
24%
Current Portion LT Debt
1402.4
841
764
67%
10%
Other Current
591.4
345
196
72%
76%
Income Taxes Payable
65.9
51
20
28%
162%
Current Liabilities
4184
3112
2489
34%
25%
LT Debt
1355
1283
1043
6%
23%
Other Liabilities
199
179
165
11%
9%
Total Liabilities
5738
4574
3696
25%
24%
Equity
2213
1819
1765
22%
3%
Total Debt & Equity
7950
6393
5462
24%
17%
The company's overall performance during this period has been impressive, with annual gains well in the double digits for 1995 to 1996 and 1996 to 1997. The company's liabilities increased at approximately the same rate over the two years, bu
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Some common words found in the essay are:
LT Debt/Assets, Business Ratios, Net Income, Financial Performance, Debt Equity, Value Line, Stock Performance, Canadair Learjet, , Current Assets, schlein 1997, schlein 1997 556, 1997 556, 1996 1997, lt debt, net income, pro forma, inventory turnover, debt equity, financial position, position company, ratios 1997 114, business ratios 1997, key business ratios, annual report 1997,
Approximate Word count = 1890
Approximate Pages = 8 (250 words per page)
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