Conclusion and Decisions Term Paper Example | Topics and Well Written Essays - 250 words

Conclusion and Decisions - Term Paper ExampleThe earnings per donation of the company were $1.99 and it had a decl ard dividend of $0.99. The return on capital of the firm was 19%. Based on the basic financial analysis performed it seems as if Sysco is a sound financial investment. I would invest $1 million in SYY common stocks. The two other decisions regarding Sysco is whether or not invest in Sysco merged bonds and to decide if Sysco is worthy of a bank credit line for its short term needs. The best way to determine how good the corporate bonds of the company are is by testing if the firm has the ability to pay off its long term debt. A balance that faecal matter help determine if the firm can pay its long term debt is the debt ratio. The debt ratio is calculated dividing assets by liabilities. The debt ratio of Sysco is 1.59. A good debt ratio is one above 1.0. Based on these results I would recommend a $500,000 investment in Sysco bonds. The final decision is regarding wheth er the company deserves a line of credit for its short term needs. A liquidity ratio that helps determine the ability of the company to pay off its short term debts is the current ratio. The current ratio is calculated dividing current assets by current liability. A current ratio is good is it is above 1.0. The current ratio of Sysco is 1.69. Based on the ratio analysis result I would recommend the bank respect a $1 million credit line. Work Cited Page Sysco.com. 2011.