Bluestone Metals, Inc., is a metal fabrication firm that manufactures prefabricated metal parts for customers in a variety of industries. The firms motto is If you need it, we can make it. The CEO of Bluestone recently held a board meeting during which he extolled the virtues of the corporation. The company, he stated confidently, had the capability to build any product and could do so using a lean manufacturing model. The firm would soon be profitable, claimed the CEO, because the company used state-of-the-art technology to build a variety of products while keeping inventory levels low. As a business press reporter, you have calculated some ratios to analyze the financial health of the firm. Bluestones current ratios and quick ratios for the past 6 years are shown in the table below:

	2010	2011	2012	2013	2014	2015
Current ratio	1.2	1.4	1.3	1.6	1.8	2.2
Quick ratio	1.1	1.3	1.2	0.8	0.6	0.4

What do you think of the CEOs claim that the firm is lean and soon to be profitable? (Hint: Is there a possible warning sign in the relationship between the two ratios?)