Discuss and interpret the financials in relation to the initiative.

Analyzing pro forma statement | Business & Finance homework help

The financials in relation to the initiative indicate that the company is performing well. With total assets increasing by 21%, cash flow from operations up 11%, and net income increasing by 9%. Additionally, with a debt-to-equity ratio of 0.6 and a current ratio of 1.3 it suggests strong solvency, as well as ample liquidity for short term debt payments.

As such, it would appear that discretionary financing would not be necessary at present due to the overall positive financial position indicated by these figures; however ,if management decides take route investing more heavily R&D projects other potential ventures might need access additional capital order finance those pursuits . In event this case highly recommended utilizing long term form borrowing related higher returns investors/shareholders adopting avenue versus less cost effective methods potentially putting strain upon liquidity taken wrong direction counterbalancing risk reward benefit equation detriment firm