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Thursday, May 9, 2019

Evaluate if Youngs is a good investment. In this answer you need to Essay

appreciate if Youngs is a good investiture. In this answer you need to consider any qualitative factors that might touch your recommendation - Essay ExampleThe competitive advantage will make the company to reward its shareholders truly well for decades thus making it a good investment. The good reputation has provided the company with a factual opportunity to expand in the future hence a good investment. Such conditions make Youngs to take in higher future financial performance hence being sufficient to provide the highest financial rewards to the investors or shareholders.Secondly, Youngs has an increasing profitability and liquidity. The current ratio of Youngs shows an upward trend and the trend is likely to slip away into the future, this indicates an increase in its ability to meet short-term obligations. On the other hand, its profitability ratios show an upward trend. The internet profit ratio of the company increased in 2014 sop is return on assets. This implies a n increase in the companys efficiency. The company is therefore very profitable nd the trend is likely to continue into the unforeseeable future. Even though the company has an increasing use of debts, it has sufficient liquidity to meet its please payments.Its cash flow in terms of interest payment is, therefore, limited hence the company is able to keep such costs to a minimum. The lower interest payments leave more cash at the disposal of the company which they can use as financial rewards to the investors in terms of dividends. In addition, the lavishness cash can be reinvested into the company to generate or create value for the shareholders of the company. In any way, the investors stand to benefit.Thirdly, the company has a very simple business model. It sells high quality ladies and gents habiliments. It is therefore very easy to monitor the performance of the stock of the company. The ever increasing demand for designer and fashionable clothing acts as a driver for futu re growth and this makes the company to be a good investment because it has a bright future in the fashion

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