Dear Mr. Macgyver,
To put it bluntly, you buisness is in trouble. Your current ration in 2004 was sufficient at 1.13:1, but in 2005 it fell to 0.88:1. You no longer have enough assets on hand to pay off your debts. You must reduce your current liabilities immediatly!
To put it bluntly, you buisness is in trouble. Your current ration in 2004 was sufficient at 1.13:1, but in 2005 it fell to 0.88:1. You no longer have enough assets on hand to pay off your debts. You must reduce your current liabilities immediatly!
However, your company has improved on collecting it's debts. In 2004 your Accounts Reciavable Turnover was 1.58:1 and in 2005 it increased to 2.23:1. Your debt collection system is efficient.
Now for the really bad news, your company's net profit ratio is in the negative. This means your net profit is not sufficient. You must lower your expenses before your buissness gets even deeper in the red. In 2005 your net profit percentage was at -25.15%. This was a 30 point decrease from 2004's percentage of 5.54%. If you darasticlly lower expenses and increase sales, your club can still make it.
Respectfully Yours,
Riley Pavelich
