Provide a 7 pages analysis while answering the following question: Kind of Finance the Company. Prepare this assignment according to the guidelines found in the APA Style Guide. An abstract is required. The company has utilized a good mix of short term and long term debt. The ratio of short term to long term debt is distributed at a proportion of practically 50/50. The majority of the short term debts are trade and other payables. This means that the company is obtaining its short term financing from its vendors and suppliers. Nearly 81% of their long term debt is categorized as long term-borrowings. The long term borrowings are possibly either bank loans or corporate bonds since those are the most commonly used long term debt instruments (Garrison & Noreen, 2003). The amount of equity the company has is worth $4935 million pounds the debt to equity ratio of the company is 1.05. A general rule for this ratio is that it is desirable for it to be around 1.00. (Beasley, et. al. 2000). The current ratio of the company which is calculated by dividing current assets by current liabilities is 1.95 (Annual Report: Sainsbury, 2008). That metric is because it means the company has nearly twice as many liquid assets than short debt implying they have no problem paying off its short term obligations.
Factoring is an arrangement in which a company sells off its account receivables at a discounted price. The transaction involves the purchase of account receivables by the lender or factor which means that if the purchaser of the goods does not pay for them, the lender rather than the seller takes the loss (Beasley & Brigham, 2000). In Sainsbury, the company has a total of $206 million pounds of account receivables. If for some the reason the company entered into any type of cash flow problems then selling off these receivables would a good solution. Currently, the company has a healthy total of $719 in cash reserves. Also, another way to look at factoring is as an investment opportunity in the sense that selling off the account receivable could be compared against the discount cost, and the conversion into cash could be utilized for other purposes.
Thank you. I will get back to you next week. There are more classes that I need help.
Client #23605
Verified order
Thanks a lot. All good
Client #0
Verified order
I loved the service it was really fast & efficient. I ended up with an A in my class!
Client #0
Verified order
It was a pleasure working with you. You are really responsible and always do you’re best and of course, we will keep working together.
Client #23592
Verified order
The essay and the Excel file looks good. Thank you for working with me throughout the project.
Client #23592
Verified order
Thank you for the quick help. I was stuck.
Client #23594
Verified order
You are a lifesaver. Thank you. I will be needing your help for the midterm exam.
Client #23594
Verified order
I am very grateful for your help. Without you, I would have quit a long time ago. Appreciate your help 100%.
Client #23599
Verified order
I know it is APA 7 and it should not have the running headers, but my professor insists on them. Please include them in the upcoming orders. Overall, I liked it and I will be submitting it tonight. Thank you.
Client #23596
Verified order
Thank you for the help. All good.
Client #23595
Verified order
You do an exceptional job, have gotten good grades n positive feedback/ comments from my professors since you started helping me.
Share all the assignment information. Including the instructions, provided reading materials, grading rubric, number of pages, the required formatting, deadline, and your academic level. Provide any information and announcements shared by the professor. Choose your preferred writer if you have one.
Get Your Order Assigned
Once we receive your order form, we will select the best writer from our pool of experts to fit your assignment.
Share More Data if Needed
You will receive a confirmation email when a writer has been assigned your task. The writer may contact you if they need any additional information or clarifications regarding your task
Let Our Essay Writer Do Their Job
Once you entrust us with your academic task, our skilled writers embark on creating your paper entirely from the ground up. Through rigorous research and unwavering commitment to your guidelines, our experts meticulously craft every aspect of your paper. Our process ensures that your essay is not only original but also aligned with your specific requirements, making certain that the final piece surpasses your expectations.
Quality Checks and Proofreading
Upon the completion of your paper, it undergoes a meticulous review by our dedicated Quality and Proofreading department. This crucial step ensures not only the originality of the content but also its alignment with the highest academic standards. Our seasoned experts conduct thorough checks, meticulously examining every facet of your paper, including grammar, structure, coherence, and proper citation. This comprehensive review process guarantees that the final product you receive not only meets our stringent quality benchmarks but also reflects your dedication to academic excellence.
Review and Download the Final Draft
If you find that any part of the paper does not meet the initial instructions, send it back to us with your feedback, and we will make the necessary adjustments.