Coast4life Case

Submitted By 78sh
Words: 308
Pages: 2

Introduction

This report evaluates the Coast4life‘s major strategic issue and alternatives for the time
That company facing a downturn in its industry due to terrorist group attack. This report
Includes an analysis for each Strategic, including qualitative and qualitative evaluation
Of each issue, including clear recommendation to achieve objective of remaining
Profitable during the downturn.

Financial Analysis (appendix 1)

1. The current ratio is increase from .64 in 2010 to 1.75 in 2012 which means that
The company is able to meet its term obligation; in addition we have an improvement in
Quick ratio
2. Total debt to equity decrease from 1.69 to 1.23. It means that the company relies to

Less debt which is good
3-interest expense is sufficiently covered and asset turnover is grew respectively
4-all the profitability ratio are growth, in addition revenue and net income grew by 13.3%
And 33.4% respectively .Gross margin is 60% now, but if the sales decline, because of M1A1 8021140

The high interest expense and amortization we will have an issue on operating income
5- Degree of operating leverage is decrease which means that EBIT will increase if
Sales revenue increase

Identification of issues and alternatives

1-$3.6 million required for fixing the hull damage for the Coastal native in 2013
2-the major strategic issue is remaining profitable during the