Inovio Pharmaceuticals Inc. (INO) Financial Analysis
Introduction
Financial statements are statements that help verify the financial situation of a company, taking into account the resources committed. They show the revenues that the company has obtained over a certain period of time. Operating expenses, financial expenses, and other expenses are allocated to revenues to obtain net income. Net revenues indicate a company’s performance. They show the cash flow obtained from daily business commitments. When comparing the performance of Inovio Pharmaceuticals, Inc. (INO), the company’s performance has dramatically reduced, Inovio Pharmaceuticals, Inc. (INO) recorded losses for three subsequent years.
Report and comparison of performance over the past two years.
Inovio Pharmaceuticals, Inc. (INO), in the performance of Inovio Pharmaceuticals, Inc. (INO) recorded losses of 88,205,772 in 2017, 96,967,830 in 2018 and 119,359,219 in 2019. The continuous increase in losses implies that Inovio Pharmaceuticals, Inc. (INO) is likely to have liquidity problems such as non-payment of operating expenses when due, relying on short-term loans to finance its operation. This will result in a reduction in production efficiency for Inovio Pharmaceuticals, Inc. (INO). (INO) and the demand for quantity in the market will not be satisfied. This may also lead to a further increase in loss in previous years.
When the company’s shares become public, they help the company raise capital that it will use in future operations, expansion, and acquisitions. Thus, the company that became public enjoys the benefits attributed to the stock market that the shares can be freely traded to help it raise sufficient funds.
Board of directors
The company should select the board of directors based on technical expertise. This should not be linked to any gender or racial issue, as I know the director should be. Any person who is legally capable of acting as a board of directors and the necessary expertise should be allowed regardless of gender or race. The CEO of the board of directors is Jacqueline E. Shea Ph.D., the distribution of gender and race is admirable since all genders are represented at the required proportion. The prediction I made was correct because being the CEO is female, shows that anyone with the necessary expertise can be a CEO. The male to female gender is approximately 3:2, which is admirable on a board of directors.
Possible market risks
The possible market risk that Inovio Pharmaceuticals, Inc. runs. (INO) is facing this year is the inability to expand its market capture. This may be due to poor performance over the past three years, which means that there will not be sufficient funds to facilitate market penetration. This may result in other competitors taking the market shares that Inovio Pharmaceuticals, Inc. (INO) is facing this year. (INO) was initially owned by Inovio Pharmaceuticals, Inc.