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Financial Analysis Huntington Steel Company Dissertation Example

5 / 5. 1

Discipline:
Finance
Chapter:
Introduction
Level:
PhD
Pages:
2
Words:
550
View Sample
Name: Instructor: Course: Date: Financial Analysis To create a better market for all imports from other countries, both Canada and Mexico have established proper systems that help in upholding the economic standards of the two countries. In this regard, we carry out financial analysis of the two countries to determine their viability as the major destination of steel export from Huntington steel company which is a major distributor, installer as well as major fabricator of several huge products made from steel (Ünay,205). Also, break-even analysis being the measure of the total production cost with the overall gains is an important aspect that should be analyzed in the two countries. This analysis will help the steel company to determine the amount of products volumes that should be exported to break even. Moreover, it helps to measure the amount of sales volume required to earn a particular amount of profit. Canada Financial Analysis Focusing at money and treasury market interest rates for all investments in Canadian markets, the rate currently stands at 1.16 compared to 1.61 rates in the U.S. This represents -0.45 spread a positive move as compared to previous periods (Dawson, 17). This implies that the rate of return on capital invested in Canadian market continually grows hence building the confidence of all world investors. Moreover, the foreign exchange rate between U.S and Canada currently stands at 0.76458 although it keeps on changing depending on the balance of payment level. In Canadian industry, the fixed cost stands at $2, 280,000 while variable cost is $20. Therefore, with $80 amount of sales per units, the breakeven point in units will be as follows: B.E.P= F.C ÷ C.M/units $2,280,000÷$60=38,000 units; this represents the total amount of units required to achieve $480, 000 desired profit. Under normal circumstances, the most likely (M) number of units to be sold by the steel firm to achieve the desired profit of $480,000 is...
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