Financial Analysis of SNAG Ltd

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Financial Analysis of Snag Ltd Table of Contents TOC o "1-3" h z "Caption,3" HYPERLINK l "_Toc342820944" 1. Executive Summary PAGEREF _Toc342820944 h 3 HYPERLINK l "_Toc342820945" 2. Financial Analysis PAGEREF _Toc342820945 h 3 HYPERLINK l "_Toc342820946" 2.1 Profitability PAGEREF _Toc342820946 h 3 HYPERLINK l "_Toc342820947" 2.2 Efficiency PAGEREF _Toc342820947 h 4 HYPERLINK l "_Toc342820948" 2.3 Liquidity PAGEREF _Toc342820948 h 4 HYPERLINK l "_Toc342820949" 2.4 Capital Structure PAGEREF _Toc342820949 h 5 HYPERLINK l "_Toc342820950" 3. Summary of Findings PAGEREF _Toc342820950 h 5 HYPERLINK l "_Toc342820951" References PAGEREF _Toc342820951 h 6 HYPERLINK l "_Toc342820952" Appendices PAGEREF _Toc342820952 h 6 1. Executive Summary Snag Ltd share price has declined significantly, falling from $0.99 in 2010 to $0.43 in 2012. The fall reflects firms financial performance. Profitability has sharply decreased, the net profit was only 1.58% in 2012; lower than equivalent ratio for the worst 25% of firms. Efficiency measures also indicate a decline in performance, reflecting the poor net profit, including declines in the return on equity and assets. Ratios indicate poor inventory and asset turnover, and poor liquidity, but these do not appear to be the cause of the current problems. The increasing direct costs and the disproportionately high increase in the overhead costs appear to be the main problem. 2. Financial Analysis Snags Ltd share has

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