Financial Analysis for Maytag
During the period from 1997 to 2001 Maytag is making money .However, it seem to have a little fluctuation go up and then go down. 1999 was the best year for the company. Also there is a sign of danger because from the mid of 1998 to 2001 the company had increase its sale but there profit went down but that could be acceptable because they have expanded and improved their business .
In term of liquidity Maytag was doing just good enough to pay its bills when they came due because its current and quick ratio are about one and that is standard average for the manufacturing industry ,however it was in need of improving its quick ratio because it went down from 1997 to 2000 even they were in good position in 1997 but they improved this ratio in 2001. the company was financed with a combination of debt and equity ,however the company has increase its debt from about 75% in 1997 to about 93% in 2001 and that had impact its ROE and its share price because it became more risky.
Even Maytag had increase its market share from 15.2% to 21.6% in 2001 in some of their products ,it was the lowest in revenue and asset comparing with its competitors, Whirlpool, GE and Electrolux.
In sum, Maytag overall was good enough heading in objective because in some of their product they were very successful in dealing with customers however in satisfying their shareholders they were in need of better financial performance because their debts increased and ROE fall
In term of liquidity Maytag was doing just good enough to pay its bills when they came due because its current and quick ratio are about one and that is standard average for the manufacturing industry ,however it was in need of improving its quick ratio because it went down from 1997 to 2000 even they were in good position in 1997 but they improved this ratio in 2001. the company was financed with a combination of debt and equity ,however the company has increase its debt from about 75% in 1997 to about 93% in 2001 and that had impact its ROE and its share price because it became more risky.
Even Maytag had increase its market share from 15.2% to 21.6% in 2001 in some of their products ,it was the lowest in revenue and asset comparing with its competitors, Whirlpool, GE and Electrolux.
In sum, Maytag overall was good enough heading in objective because in some of their product they were very successful in dealing with customers however in satisfying their shareholders they were in need of better financial performance because their debts increased and ROE fall