6. Liquidity ratio
Current ratio ( should be > 1)
2007 : 0,88 not safe
2008 : 1,11 safe
+ 79 % short terms debts
The weight of the short term debts in the curretn liabilities went from
42,39% to 65,8 %
Quick Ratio ( should be > 1 )
2008 : 0,60 not safe
2007 : 0,84 not safe
Increase of 20 % of the inventories
7. Interest coverage ( should be 4 at least )
2008 : -1,19 not safe
2007 : + 4,34 safe
Negative EBIT in 2008 and more debts,
Positive EBIT in 2007 and low investment
High risk of default
Gearing ratio (should be >1)
2007 : 1,32 safe
2008 : 2,04 safe
More equity in 2007 than 2008