BUSINESS PROBLEMS Examine the following sets of ratios and identify the business problem the company is most likely experiencing LIQUIDITY T+1 T+2 Current Ratio 1.450 1.447 1.444 Quick Ratio 0.580 0.628 0.669 Inventory:Working Capital 1.266 1.209 1.159 Current Debt:Inventory 1.755 1.852 1.945 PROFITABILITY 47.00% 47.00% 47.00% 1.68% 1.68% 1.68% 1.37% 5.14% 1.33% 1.29% 4.66% 4.89% 7.486 48.760 4.897 6.031 60.520 2.595 Gross Profit:Net Sales Profit on Sales Net Profit:Total Assets Net Profit:Net Worth ACTIVITY Sales:Receivables Days Sales Outstanding Sales:Inventory Inventory Turnover Days Sales Inventory Sales Net Worth Sales:Working Capital Fixed Assets:Net Worth Fixed Asset Turnover Total Asset Turnover Cash Velocity Average Payable Period CAPITAL STRUCTURE Total Debt:Net Worth Current Debt:Net Worth Long Term Debt:NetWorth Long Term Debt:Working Capital Long Term Debt:Fixed Assets 9.865 37.000 5.000 2.650 137.736 3.058 6.330 1.400 2.184 0.815 9.780 140.628 2.909 5.921 1.336 2.176 0.790 9.622 62.032 4.798 2.543 143.521 2.773 5.561 1.279 2.168 0.766 9.469 83.064 41.000 2.750 1.074 1.676 3.470 1.197 2.682 1.100 1.582 3.221 1.184 2.621 1.124 1.497 3.002 1.171 1.171 Long Term Debt:Fixed Assets Coverage of Fixed Charges 1.197 8.400 1.184 8.400 8.400 Falling gross margins Fixed assets financed by cash No problem Accounts receivable management problems