Ratios and financial planning at East Coast Yachts.

East Coast Yachts, an exclusive boat dealer located in the East Coast of the United States is known as “East Coast Yachts”. It specializes in servicing and selling luxury craft to people all around the world. East Coast Yachts’ financial planning can be best aided by analysing key ratios which will give insight into the company’s operations.

The liquidity ratio is a good starting point, as it measures a company’s ability to cover short-term liabilities with available assets. East Coast Yachts determines its ability to meet immediate obligations without the need to borrow long-term investment capital or to liquidate existing assets. Low liquidity levels indicate that sufficient funds exist, but low values can cause cash flow problems. It may also suggest other financing sources such as debt restructuring and external funding.

This ratio measures how much East Coast Yachts has borrowed relative to the equity investments made by creditors, shareholders and owners. Determining this value will help identify if financing decisions have been prudent – i..e too much debt relative equity results reduced returns for investors whereas lower values imply stronger footing when negotiating favorable terms creditors etc.. Additionally ,time interest earned (TIE) can used benchmark firm’s efficiency service existing obligations handle any future ones potentially required along way ! All these metrics can give a clear picture of the organization’s current position and highlight areas that need improvement. This will help you to create a financially sound plan for moving forward.