Maris Marble Company Case Study

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Maris Marble Company (MMC) was founded in 1981 by George Zervos and Gus Maris. It is structured as a partnership between the two, with them owning 20% and 60% respectively. Their main business deals in marble of granite products as well as marble. Some of their popular products are slabs, tiles, blocks, as well as customized products of this nature. Their main target customers are people in the building industry such as builders and contractors as well as individuals. They also sell to retail stores throughout the southern region of Texas. From the company data over the period of three years and two projected years, the company profitability ratios shows a good performance that has been on the positive movement over the three years and expected …show more content…

They are all fluctuating making it hard to obtain financing. The debt ratio has performed poorly and is on the drop between 1989 and 1993. The same case applies to debt to worth ratio, and debt to tangible net worth. All these trends are unfavorable and spells lack of sources of financing for the company in future. Curiously, the company has been performing poorly, with 1993 expected to give the worst results of all period. Most of these ratios are also below the desired levels such as the debt to tangible net worth and debt to worth going well under 1 and even below 0.5. These are unfavorable figures and would deny the company any finances when …show more content…

Further, it has a high conversion of its assets to sales and consequent profit. Furthermore, investors continue to get back their money because the business is currently profitable and would increase their funding even if the ability of the company to pay debt has not been performing well. The main weaknesses include the company inability to recover debts within good time. Poor leverage ratios keeps the organization at risk of failing to get financing when it is needed without selling part of its equity. The leverage ratios are poorly performing and in some cases below the healthy threshold. The company might be under pressure to cede more equity in case of needs for finances in future. Another weakness is its structure as a partnership where there are very few sources of financing, unlike companies that may have better diversity in sources for their finances. Although the company seems well managed and profitable, the owners, who are the main decision makers may not be the best in creating business strategies for the

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