CASE STUDY

Case Study - Repair Man



Case Study - Repair Man

Questions 1:

Factors contributing to Mayne's Deteriorating Financial Position

It can be argued that the methodology for analyzing the financial condition of the Mayne's deteriorating financial position is important to study at a sufficient level. Any specialist training for the economic strength to calculate the complete set of financial indicators of Mayne in areas such as that include liquidity, financial strength, profitability and turnover. Often, however, in the ongoing analysis of the resulting conclusions about missing the main causes of deterioration of the Mayne and recommended the levers of its optimization. Perhaps this is due to the fact that in the analysis did not seem quite clearly the relationship and the laws that exist in the economy of the Mayne.

The process of financial analysis pertain to Mayne's deteriorating financial position, like any other complex process that should have its own technology that is a series of steps aimed at identifying the causes of deterioration of the Mayne's financial position and leverage optimization. The problems and difficulties arising in the financial condition of the organization will eventually have two main manifestations (Groppelli and Ehsan, 2006). They can be formulated as;

Low liquidity (cash deficit) and

Insufficient return on capital invested in the company (low profitability).

Low liquidity indicators are poor indicators of liquidity, overdue payables, extra debts to the budget, personnel and credit organizations. On the lack of returns on invested capital in the Mayne's deteriorating financial position shows low profit margins. The greatest interest is shown to the return on equity as an indicator of satisfying the interests of the owners of the organization (Lawrence, 2008). There are two causes of global problems and difficulties arising in the financial condition of the company. These reasons can be formulated as;

Lack of potential to maintain an acceptable level of financial condition (or low levels of profits);

Inefficient performance management that is mismanagement of finances at Mayne.

Questions 2:

Financial Pressures at Mayne in relation to Singapore's Private Hospitals

There are three main components, which are in the area of financial pressures at Mayne in relation to Singapore's Private Hospitals, this include the management of working capital, management of investment policy and management structure of funding sources.

In context of Mayne and Singapore's Private Hospitals, for working capital management, many existing enterprises due to financial difficulties it is irrational to working capital management, we have established an enterprise approach with regard to working ...