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Essay / Case Study of 1300SMILE Ltd - 717
It seemed that the company was going bankrupt soon as the profitability, asset efficiency and liquidity ratios were decreasing. However, this may not be true. Since debt-to-assets and debt-to-equity ratios have declined over the past four years, the company has become less reliant on debt (Chron, n.d.). The company is therefore stable with a lower proportion of debt and a stronger equity position. Thus, the company will still have the possibility of improving its situation if it takes into account a few things.