The financial ratios show the performance of Cochlear Implants. The liquidity ratios show the ability of the company to pay the obligations. The current ratio estimates the ability of the organization to pay all the obligations. The current ratio of the company is above two which implies strong financial position, and the company can pay the principle loan amount and its interests. The current ratio in the year 2016 is 2.16 which implies good performance of the company. The debt to total asset ratio shows the financial leverage of the company. It estimates the total amount of total assets of the company that was financed by debt, liabilities and creditors. The debt to a total asset of the company has shown a positive result (Welch, 2014). The total assets of the company are more than the total liabilities. The ratio shows the strong financial performance of the company. Thus, the ratios clearly show that the company would be able to pay the loan and interest. The net profit margin shows an increase in the net profit of the company and increase in the performance of the company.
The cash flow statement of the company shows the inflow and outflow of cash. The operating cash flow shows the flow of cash from operating activities. The cash flow from the operating has decreased in the year 2015, but it has increased in the year 2016. The cash flow in the year 2016 is much more than the year 2015. The cash used for the investing activities shows negative balance and the cash used by the financing activities shows a negative balance. However, the net cash flow of the company has increased in the year 2016 and depicted increase in the inflow of cash. The cash flow statement shows the positive flow of cash of the company (Rahman, 2015).
The financial ratios of the company show that the performance is good in the year 2016. The profitability ratio, solvency ratio and efficiency ratio of the company show that the performance has increased in the year 2016. However, the management should take adequate steps in order to increase the efficiency of the organization. The company should accept the loan application because the liquidity ratio shows that it would be possible for the company to pay the loan amount. The profit margin has increased which means increase in the returns from the invested capital. The ratios show positive performance of the company. The management should utilize the resources of the company because it is important for the growth and capabilities to pay all the obligations.