This would completely depend on how far the gross profit ratio decreased in the second year compared to the ratio at the start of the year.
it mean the cost of sale sale of company increase or the direct cost increase
Headwind finance can present challenges to a company's financial growth and stability by causing increased borrowing costs, reduced access to capital, and decreased profitability. This can lead to constraints on investment opportunities, hindered expansion plans, and overall financial strain for the company.
The 'financial statement' reflects the financial position of a company at any given time.
How would you analyse the financial position of a company from the point of view of an: (i) Investor (ii) A creditor, (iii) A share holder
You can measure a company's performance by assessing their financial position. There are many financial ratios that can be used to see if a company is performing.
It's the Balance Sheet.
MGM is facing financial problems primarily due to the impact of the COVID-19 pandemic on the hospitality and entertainment sectors, leading to reduced revenues from its casinos and resorts. Additionally, increased competition, rising operational costs, and challenges in the film industry, including changing consumer preferences and streaming competition, have further strained its financial position. These factors combined have resulted in decreased profitability and cash flow issues for the company.
Financial position of the company
Liabilities must balance with assets on the balance sheet in order to accurately reflect the financial position of a company.
it refers to the assessment of financial statements of a company to make decisions regarding performance and financial position. it covers various areas of a company, like profitability, liquidity, solvency, and market value.
Financial forecasts and financial projections are estimated future financial statements of the company that presents its expected financial position. Financial forecasts assume that the company will continue to function in the same manner as it is currently functioning and in financial projections there are few hypothetical assumptions about a company's future course of action.
"In the black" is a financial term that indicates a company or individual is operating profitably, with revenues exceeding expenses. It contrasts with "in the red," which signifies a loss or negative financial position. Being "in the black" suggests financial health and stability, often leading to increased confidence from investors and stakeholders.