Product cost too increased. In what the reason of this increase? Why operating expenses (from 642 thousand dollars to 807 thousand dollars), i.e. the expenses connected with the maintenance of administrative facilities, rent of rooms etc. grew. The considerable part of growth of "other expenses" was made by percent on a debt (61,8 thousand from 149,5 thousand dollars). What conditions of the loans obtained by the company?
The main assets – debtors, commodity stocks and fixed assets. High specific weight of these articles is usually characteristic for the industrial companies, and in this regard the balance of firm is not unusual.
The majority of firm crashes – result of badly organized management. Typical problems – a lack of depth and a variety of administrative examination, unsatisfactory planned and accounting services, the general incompetence. As a rule, imperfect management is connected with growth costs when to dynes ichno the developing company faces shortcomings of strongly zatsentralizovanny management which is not able to capture all details of economic process
Fixed assets increased three times – from 319 thousand dollars to 1184 thousand dollars. In what the reason? What structure of means – buildings, the equipment? What equipment was bought? If it is acquired for production expansion, what probability, what demand for production of the company will grow? If the equipment is necessary for providing one project why the company did not lease it?
Gross revenues of the company steadily grew – from 2565 thousand to 4179 thousand dollars. Whether this growth is connected with aggressive strategy for expansion of sales or with reduction of prices of production? In what measure growth of the income is defined by new buyers? Whether they will accurately pay the bills?
The coefficient of operating costs is understood as the relation of the fixed expenses to gross expenses. Respectively at high coefficient and at decrease in volume of realization the company feels sharp reduction of profit
The financial coefficient reflects the relation of external long-term obligations to own capital of corporation. At high financial coefficient and when falling volume of realization expenses on service of a debt sharply increase.