Sustainable investment solutions Inc. : Tanka limited analysis and recommendationsIntroductionSustainable investment solutions Inc, is a company that is eco-friendly solutions oriented. It is mainly concerned with provision of economic solutions that are aimed at greater production while playing part in environmental upgrading. Along with this process comes, business profitability analysis and strategy suggestion. In this situation, Tanka Ltd will get their recommendations and business analysis and this will be based on their financials. Executive summaryA close look at Tanka limited shows that it is still at the exponential growth phase.
This is because after operating for the last five years, it has established a trend of successive and incremental profits. This is great news to potential investors since the company has growth potential. With only an operating capital of $250, 000, the company is able to raise a gross profit of $400,000 and a net of $94,500. This shows that there is a return on equity of 7.8 % at a time when the capital assets only account for $1050000 and machinery being $450000. This is an indicator that with more machinery and with the high affinity of the product from the customers, if there were more machines, the production could be higher and the marketing boundaries would expand to all areas in Australia and abroad.
This would in turn result into more profits and therefore a brief analysis of the company financials already shows that Tanka limited is a company with viability on investment. The fact that it is not listed in the stock market makes it immune from the world economic changes and this is an advantage since it is possible to nurture the profitability of the company slowly until it reaches a multinational level (Lenos 95). Purpose of the reportThe purpose of this report is to see to it that Tanka limited has hit its potential productive capacity with a three year period.
The analysis is aimed at coming up with a capital budget financing technique that will enable the company to expand in its capital structure and increase productivity while it ensures that it does not affect its profitability negatively. It is also aimed at offering management an expansion system which they will use to increase revenue and to present to all potential investors as an indicator that the company is inclined to making profits (Sachs & Jeffery 08).
The evaluation is also meant to give potential investors a go ahead into investing in the company. The report is also aimed at enlightening the current share holders on their returns on investment. This report is aimed at offering Tanka Ltd a way forward. This is in terms of sustainable investment. The sustainability in this case will be recycling of tins that will be used to in packing coffee in the industry.
Tins can not decompose and when they are littered around, they pollute the environment with their chemical content which inhibits greening of the environs. Tins are breeding areas for mosquitoes that cause malaria so when they are left around, they are health hazards and they may lead to spread of malaria. When tins are left around, they make the environment look untidy since they litter around the area. When Tanka. Ltd decides to collect tins and recycle them, this will be a very environmental friendly measure since there will be no littering of tins in the area.
They will also be preventing the spread of malaria and therefore they will carry out a social responsibility of cleaning the environs. They will benefit since the community will be aware that they are cleaning the environment and they will buy their products which will be promoting their products. They will also benefit from the tins since they will reduce the cost of buying tins from manufacturers when they recycle. This will reduce the operational costs (Speth & Gustave 08).