Introduction
The business organization, rules, workplace conditions, and corporate responsibility significantly affect the firm’s equity. The advantages of funding Ancient Greek Sandals include high-quality products, the brand’s great acceptance, and the growth rate. However, the collaboration with Rainbowwave of Maria Lemos proves the inability of Ancient Greek Sandals to act independently on the international level. This is important because 97% of the business’s products are shipped to 40 states. Therefore, the company’s funding must be linked to gaining influence on its sales in the international market because its product is quite popular and unique, which can guarantee the multiplication of investments.
Criteria to Evaluate the Company‘s Potential for Funding
I want to use Return on Assets, Debt to Asset Ratio, and Firm Size as criteria while considering the company’s capacity to multiply the possible investments. The company’s financial performance level is a key determinant of business value. Return on Assets is a metric for evaluating how much properties contribute to net revenue.
The Debt-to-Asset Ratio determines how much debt is used to maximize wealth, or the amount of credit that impacts corporate finance. The bigger the debt ratio, the more likely the business will be unable to meet its commitments, so the credit must be used wisely to maximize profit prospects. A firm’s financial assets, revenues, or stock can be used to calculate its size (Husna & Satria, 2019). Enterprises with significant net capital have finished growing. They are deemed to have opportunities for integrating into a reasonably stable timeframe and can generate profits compared to companies with a modest total capital.
Conclusion
Thus, the Return on Assets indicates that a quality product provides the company’s income, the Debt-to-Asset Ratio is not high, and the company could be bigger. I would state that Ancient Greek Sandals is worth raising funds from my company due to its reputation, growth, and sales rate.
Reference
Husna, A., & Satria, I. (2019). Effects of return on asset, debt to asset ratio, current ratio, firm size, and dividend payout ratio on firm value. International Journal of Economics and Financial Issues, 9(5), 50-54. Web.