From the background information and cost of capital analysis, one cannot deny the fact that Mobile is destined for much bigger performance within the industry. From the performance depicters used Mini Mobile’s operation indicates positive figures which set a good base for the company to enjoy much advantage within the industry. Starting with the working capital which is the pillar of any company’s success in the global market, Mobile Min enjoys a good working capital which is represented by 7.68% as the cost. 7.68% is the cost of capital in any organization or company clear points at stability in setting and financial management of the company. The positive figure of weighted average capital considers wide variety of financial elements for the company’s performance. From its positive capita base Mobile Mini has been able to a build a solid financial ground which always put the company in a good position to meet all its obligations in the market. The following margin analysis presents the flow of the company’s revenue which depicts the stability in the capital structure depicted by the positive figure of 7.68%.
Table 1: Financials from www.mobilemini.com 2009 2010 2011 Margin Analysis %of Total Revenues %of Total Revenues %of Total Revenues EBITDA 41.8 39.3 37.4 Operating Income 31.4 28.5 27.6 Net Income 9.4 7.0 9.3
From this template, it is clear that Mini Mobile has established solid financial ground which allows the company to remain positive or relevant in the market (Mobile Mini Annual Reports, n.p). A keen valuation of the total revenue and the net income points out the fact that Mini Mobile is in a better position to service any debts and expenses and still remains active in the market.
The debt structure of Min Mobile is another key factor when analyzing the company’s market delivery or performances. From the individual and overall debts structure displayed below. One cannot rebuff the point that the enterprise is well managed by reducing the value of long term debts which can derail the company’s market success.Structure of Debt Short- term Debt Long -term Debt Cost of Debt 2.25% 5.66% 2.4% 319 200 519 Structure of Debt Structure of Company Equity Debt 51% 49%
Mobile Mini’s Equity exceeds its debts though a small margin. From the margin, one will right to conclude that the enterprise is in a point to service all the debts and maintain a going concern as one of the major principles of any organization. This also provides the company with much needed financial room of expansion. The stable of positive debt structure of the company is an important corporate finance element needed to steer the company to success and attract more investors.
Corporate finance is an important and sensitive area in financial dealings. It is sensitive in the sense that it must meet or cover the interest of both the corporation in the best way possible. In order to understand the area of corporate finance one must have clear information about stock market operation, this because the ability of any corporation to meet the interest or create wealth for its shareholder is dependent on its stock market value (Goyal 32). The financial strength of any publicly traded corporation must be shown on annual and other periods based the records held by the capital. Most investors and shareholder tend trust this information because it brings out clear net worth of the corporation based on daily stock market performance. The solid financial reports are an indication of positivity on the financial rations of the company.
- Goyal, Accounting for Managers, V.K. (India) Enterprises 4323/3, Ansari Road, Darya Ganj, New Delhi-2 Mobile Mini Annual Reports, Annual Report 2010, http://www.mobilemini.com/investor-info/annual-reports/