The sustainability of any company depends on the extent of retained earnings and the return earned on retained earnings. In the last 5 years the company recorded its highest sustainable growth rate in 2010. But after 2010 it gradually decreased and increased again after 2013. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay The following reasons can be highlighted for this decline: Decrease in retention rate Decrease in ROCE All return on invested capital ratios provide good evidence of the sustainable growth rate decline pattern. CREDIT ANALYSIS according to ratio analysis (based on calculations) The company's current ratio decreased from 2012 to 2013, but increased again in 2014. The quick ratio also adopted the same pattern as the current ratio. When compared with the expansion of current assets over the past two years, current liabilities show a notable decrease relative to current assets. This is the direct reason for the increase in current and quick ratios in 2014. Trade debts, other debts and other non-financial liabilities have a greater impact on this. In any case we can conclude that the company is maintaining a positive liquidity position just by observing the current and quick ratios, but this is not sufficient since the ratios are less than 1. Normally if a company maintains a current/quick ratio around 2 it is considered healthy. According to the asset composition analysis we can see that Dialog has managed to keep the inventory level as low as possible over the last three years. However this is obvious for a company operating in the telecommunications industry as most of its stocks consist of mobile accessories, cell phones and scratch cards. Therefore there is no huge difference between the current ratio and the quick ratio. They have a larger portion of cash in their asset portfolio. The company's credit period increased from 2012 to 2013 and decreased in 2014. Credit sales increased over the past three years, and receivables increased from 2012 to 2013 and significantly decreased in 2014. This indicates that the company is following a more aggressive credit policy. Furthermore, if you look at the telecom sector, we know that the majority of these customer account balances are corporate customers or individual customers using postpaid packages. The outstanding period of the debtor has decreased in the last two years and this is a good sign of the company's credit policy. The company's success in managing current liabilities is varied. Their credit purchases have increased in recent years. The creditor's outstanding period increased from 2012 to 2013 and also increased in 2014. The creditors may have offered more flexible credit terms to the company and this also indicates that the company has a strong negotiating ability with the creditors. These results are consistent with the company's expectations for improved liquidity. They are maintaining a positive liquidity position over the past few years. Since there is a tendency to lose the profitability of the company when focusing more on liquidity, the company should also pay attention to the state of profitability. 1.1 Capital structure and solvency Solvency analysis involves several key elements. Capital structure analysis is one of them. Capital structure simply refers to a company's sources of financing. Based on our capital structure calculations we can see that they have maintained a low ratio 2015.