Financial services for corporate clients ( Financial analysis + Speech or Presentation

Financial services for corporate clients ( Financial analysis + financial calculations) - Speech or Presentation Example It may be because the inventory turnover was lower and it increased the cost of sales therefore they should focus on their supply chain management. All the businesses need to finance their operations in order to make it a going concern otherwise it will be liquidated or bankrupt. Short- term financing refers to financing the day to day operations or expenses such as purchase of raw materials, paying administrative and rental expenses or paying electricity bills. Since as it can be seen from the net cash flow from operating activities table, that the firm has a positive net cash flow from operating activities therefore it can meet those operating needs easily thus short term financing needs could be easily met by the business if it generates sufficient sales in the future. The company can utilize trade credits by using discounts since they already have positive cash flows and can save a great deal of amount. Medium term financing requirements generally expand from a period exceeding one year but have a time horizon of lesser than five years. These types of financing are used to modernize the machineries or equipment or used to improve the facilities. The company needs to incur medium term costs but it is self sufficient and it can finance its medium term needs from its positive cash flows. Long term financing is used to finance fixed assets or used for capital budgeting purpose. To expand its operations, Gulf trading needs long term financing and it can use the various options available to it. Since it has a positive profitability with an average debt-equity ratio, it would be a feasible option to finance through bonds. It can raise debt since it has a very higher time to interest ratio than the industry implying that it can redeem its dues in a timely manner. However, it should be understand that the debt to equity ratio should not exceed the