Wednesday, January 30, 2008

ratios

The Current Ratio for 2004 is insufficient, at about 1.1:1, it is just under what is acceptable. You need to increase your current assets or decrease your current liabilities. Your business could end up in bankruptcy if your debts come due. The current ratio for 2005 is worse yet, at 0.9:1, your business is hurting if your debts come due. Recomendation is to decrease liabilities. Your Accounts Recievable Turnover Ratio for 2004 is insuficient, as well for 2005 which is at 2.2. My recomendation is to improve your debt collection system.