You, as the Financial Manager, have been assigned to assess the financial performance of ABC Company and have been given the following information for 2016 to 2018.

	2016	2017	2018
Current Ratio	1.80	2.20	1.40
Quick Ratio	1.20	2.00	.80
Debt Ratio	.80	.70	.90
Debt to Equity Ratio	4.00	1.80	8.00
Inventory Turnover	38	40	45
Average Number of Days Receivables	10	20	45
Return on Equity	14%	30%	35%
Return on Assets	10%	20%	15%

• What is the overall financial health of the company?
• What recommendations would you have based on these ratios?
• How liquid is the business?
• What is their debt structure? Mostly equity or debt?
• Are they efficient in their operations?
• What does profitability look like for the business?
• Are there any red flags?
• Is the business sustainable?
• Where can the business improve?
• Where are their strengths and weaknesses?