Declining profitability and liquidity ratios are indications that a company may not survive.

Question

Quizplus · Accepted Answer

Declining profitability and liquidity ratios are often warning signs that a company is struggling and may not be able to continue operating in the long term. Lower profits and difficulty accessing cash can make it challenging to pay bills, invest in growth, and meet other financial obligations. While these indicators do not guarantee a company's failure, they suggest that further analysis and intervention may be needed to improve the company's financial health.

Declining Profitability and Liquidity Ratios Are Indications That a Company