A healthcare business has a current ratio of 1.5, a quick ratio of 1.3, and a debt to net worth ratio of 2.0. Such a business is most likely to have difficulty with ____.

Question

Quizplus · Accepted Answer

The debt to net worth ratio of 2.0 indicates that the business has twice as much debt as equity, suggesting potential difficulty in managing long-term debt obligations. The current and quick ratios show the business is relatively liquid in the short term, making current liabilities and short-term profits less of a concern. A forensic audit is not directly related to the financial ratios provided.

A Healthcare Business Has a Current Ratio of 1