Essay --

The objective of this article is to analyse the strengths and weaknesses of Speedster Athletics Companys financial position. Company has a good profitability and a attractive summation base.However following strengths can be highlighted in the financial position of Speedster Athletics CompanyFavour adequate Gross profits Speedster Athletics Company has been able to generate favourable gross margins over the last three years consistently over the industry average of 26%. Gross margin is in a declining trend over 2010 to 2011 where 2011 gross margin is 27% (1371/5075*100%) which is 1% lower than 2011, however this is above the industry average level, proving that Speedster company is qualified of generating better margins. Increase in Fixed assets base in 2011 over 2010 From 2010 to 2011 there has been a 23.8% increase in gross fixed assets value. The raised finances through long term debts would have been used to enhance assets base of Speedster. This is a very positive sigh of fut ure profitability and capacity of the company. higher(prenominal) assets should be able to generate more cash inflow...