1. What is the basic purpose for examining trends in a companys financial ratios and other data? What purpose do the ratios serve?
2. Which financial ratio(s) do you think are most important and why?
3. The president of a plastics company was quoted in a business journal as stating, "We haven't had a dollar of interest-paying debt in over 10 years. Not many companies can say that." As a stockholder in this company, how would feel about its policy of of not taking on debt?