Auror Unattractive Company

Satisfactory Essays
Aurora was a unattractive company because of their financial performance and that’s because a lot of competition arose that really hurt Aurora. We try to analysis the period of 1999 through 2002. We saw that the company profitability have worsened with every year that passed, net sales have been declining by 15% and profit margins and ROA were always in the negative in exhibit 1. The raw material cost of the net sales have been declining and the cost of conversion is affecting the bottom line in exhibit1. The company does not have the ability to meet its current obligations with just cash or with cash equivalents. That is because the firm’s current assets are predominantly account receivables and inventories. Aurora and other companies in the
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