Essay --

The objective of this article is to analyse the strengths and weaknesses of Speedster Athletics Company’s financial position. Company has a good profitability and a attractive asset base. However following strengths can be highlighted in the financial position of Speedster Athletics Company; †¢ Favourable 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 capable 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 funds through long term debts would have been used to enhance assets base of Speedster. This is a very positive sigh of future profitability and capacity of the company. Higher assets should be able to generate more cash inflow...