The company has good financial growth but same time the increase in short term and long term liabilities will make trouble in coming time
The company’s quick and current ratio have decreased. That is clear indicator for increase in current liability than the current assets, and it is not a good sign for the company for future stability and growth
The leverage ratio and inventory issues had increased. That means the debt has increased and the company is not able to sell its services and products and hence the revenue is not as per the company’s need 。
The overall financial statement of the company and the required ratios for last 4-10 years indicate that the company’s long term stability is the question mark with increase debt and decreasing in sales in its products and services. The company will not be able to sustain itself if the same growth is continued with increase in its debt, liabilities, turnover ratio and decrease in its current ratio, quick ratio, receivables ratio and more.
Therefore, the company’s growth is not sustainable for long term. The company needs more sales and reducing its debts and liabilities. Therefore, company should more focus on improving its financial cash flow for sustainable growth for longer term.