Question
Your brother in law is telling you to buy stock in a company with the following financial ratio trends. He's excited about the companies use
Your brother in law is telling you to buy stock in a company with the following financial ratio trends. He's excited about the companies use of leverage to buy back lots of its own stock and retire it. What do you say to him? What is the trend for each possibly telling you?
2019 2020 2021 2022
Current ratio 2.0 1.8 1.2 .8
Inventory Turn 10 9 8 6
Debt to Equity .5 1 1.5 2
Return on Net Worth 11% 12% 11% 14%
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General Management Processes And Action
Authors: David A. Garvin
1st Edition
0072432411, 978-0072432411
