Normas Apa Aplicacion

2. What is the assessment of the performance of SciTronics during the 2005-2008 period?

SciTronic Performance can be categorized as Health Company because its profitability ratio that increase during the 2005-2008 period. From 2005-2008 SciTronics saw a significant increase in Sales US$ 147K – US$ 244K. In the other hand, they had a decrease in profit margin also occurred during this same time from 70.75 to 69.67. ROE increased significantly from 8.20 in 2005 to 16.47 in 2008. Due the significant increase in net income from 2005 to 2008 (almost the triple), it also saw a jump (almost double in total) for the same time period. ROA in 2005 was 5.38% and in 2008 it was 8.82%, this increase is a direct reflection of the increase in net income over this time period as well as the increase in total asset over the same time period

The asset to equity ratio was 1.52 in 2005 and 2.12 in 2008, these numbers tell us directly that the company has taken on more debt in an effort to increase their asset. The financial statements reveal that SciTronics increased its liabilities incluiding: note payable, accounts payables, etc.

3.  Has its financial strengths and its access to external sources of finance improved or weakened?

SciTronics financial strength and its access to external sources have improved and this can be seen from the financial ratios like profitability ratios and leverage ratios

4. What are the 2-3 most important questions we would ask management as the result of your analysis?

• Which will be the management plan to maintain total current liabilities that had been increase during period time 2005 –2008?
• Will the company continue expanding their fix asset such as property and equipment?