is the first that you use to analyse liquidity, along with working capital ratios. Enron were reporting profits for sixteen quarters but if the cashflow statement had been analysed properly the extent of their problem would have been picked up a lot sooner. I know the balance sheet figure show a big debt, debts can be repaid, but we haven't got any day to day cash to get out of this situation. If i was doing an independent analysis of the company then i would highlight that it had no profitability and severe liquidity problems. has anybody checked the gearing yet?
Total debt increased by 917,280 from 7,490,824 in 2010 to 8,408,104 in 2011. Total assets decreased by 364,165 from 5,697,879 in 2010 to 5,333,714 in 2011. Increasing debts, decreasing assets...not a ... more