Stone Resources Australia Limited Case Study

16. How would you assess the overall risk structure of the company in terms of its Operating Risks and Financial Risk (Debt to Capitalization Ratio)? Very strong Net Worth and DTNW, and low debt to total

An assessment of the company’s financial statements will highlight the firm’s management of its risk and opportunities.

ROA’s situation is defined largely by recent financials. They have demonstrated year over year decline in revenue, profit, and net income since 2003 as demonstrated in Figure 1 (below). (MSN Money, 2008)

The key risks that the company faces are economic conditions, competition, key employees, suppliers, availability of credit, financial risks, business continuity, revenue dependence, cost saving, leased property portfolio, as well as, some other minor risks. The amount of risks faced by the company is high, and the realization of those risks is a good possibility in light of the performance of the company.

At the end all the risk are finance related, because the liability’s cost money and this will have an effect in the company’s earnings, so what is important is not only to try to avoid such events but also to be prepare in case they happen and have a plan, is like the saying “Hope for the best but be prepare for the worst”.

3. What is the financial risk of the company (the LT debt to total capitalization ratio)?

Ideal Stone is a countertop store that is located in College Park, Maryland. It was founded in 2014. The types of projects they work on include countertops, countertops and cabinets, tiles, and remodeling. They offer and install more than 150 different colors and patterns in natural stone- granite and marble as well as engineered stone- quartz for countertop applications. Ideal Stone is Thumbtacks’ Best of 2016.

Risk recognition and management are vital to the operation of this company (BHP Billiton 2015, p.20). According to the previous financial activities, there several significant risks influence BHP Billiton, which are commodity risk, foreign exchange risk, interest risk, transportation risk and sustainability risk.

Not paying college athletes is by far the right decision. This has been largely debated for years and both hold valid arguments for each side. The majority of the people who want to see them get paid are the players and those on the other side of the argument are those who are not involved in the sport. The reason they should not be paid is the money will ruin the game if it gets involved. It is highly likely players will focus more about money than winning and could easily be distracted.

This report analyses the financial performance of BHP Billiton, a diversified natural resources group, for a potential investor. It uses the financial ratios to analyse the company’s profitability, liquidity, efficiency and investment potential.

Usually, the most common risk management strategies can be subdivided into multi-stage approach in order to obtain a better impression of the underlying risks and thus to increase the probability of mitigating the firm’s risks properly and successfully. Also General Motors Corporation has developed various rules and guidelines to help manage minimize the risks associated with their business and investment operations.

The course project involved developing a great depth of knowledge in analyzing capital structure, theories behind it, and its risks and issues. Before I began this assignment, I knew nothing but a few things about capital structure from previous unit weeks; however, it was not until this course’s final project that came along with opening

quantity of net income dollars of company earned for each dollar invested by the owners was 8.5% in 2010 and 10.4% in 2011 reflecting an increase of 1.9%. After analyzing the solvency ratios the following highlights were found: Riordan’s debt of totals assets ratio indicates company’s capability to survive losses without spoiling the interests of creditors. For 2010 was 14% and during 2011 was 29.4%, showing an increase of risk of 15.4% (higher the number, higher the risk that leads the company to be unable to meet its maturing obligations). The company’s time’s interest earned ratio that determines company’s capability to meet interest payments as they come due was 26.9 in 2010 and 8.3 in 2011. A high ratio on times interest earned may lead to investors to think that a company has an undesirable lack of debt or is paying down too much debt with earnings that could be used for other projects (Investopedia, 2013). Subsequently evaluating our performance and efficiently of the collected data, it reveals that Riordan Manufacture has displayed remarkable progress in comparison between years 2011 and 2010. The company liquidity demonstrates that we are capable to

Identify the potential risks which affect the company and manage these risks within its risk appetite;

The operations on a FPSO encounters many hazards or risk to personnel and the environment. Production facilities on the FPSO increases the risk associated with many marine incident.