Five Years Data Analysis for Taylor Wimpey Free Essay Example, 1500 words

The company s focus is on maintaining the long term to equity ratio within an acceptable range however, trends do not indicate a particular pattern which can reflect upon the particular policy adopted by the firm to have a pre-determined ratio to follow. It seems that that the firm has a determined policy of adjusting its financing mix according to the economic conditions of the country. During 2009, the firm has been able to consolidate its debt and as such it has further rationalized its cash flows to release some pressure on its depleting resources. Most of the long term debt is in the form of debentures as well as bank loans whereas Bank loans and bonds are in multi-currency i. e. GBP and Canadian/US Dollars which can create significant risk for the firm in terms of foreign exchange risk. The debentures are issued at various rates and are of various maturities with last tranche of bonds to be expired in year 2019. It is critical to note that that the highest rate offered on bond s is 9.00% p. a. which matured in 2009 whereas rates offered on other tranches of bonds range from 4.98% to 6.8% p. a.We will write a custom essay sample on Five Years Data Analysis for Taylor Wimpey or any topic specifically for you Only $17.96 $11.86/page This step decline in the dividends paid out may also be attributed to the fact that the firm was going through a consolidation phase wherein it engaged itself into the consolidation phase and further consolidated its cash flows and rationalize its debt position.