CanGo's financial condition can be measured by analyzing its financial statements, in particular by conducting a ratio analysis. The company is liquid. Its current ratio is very high at 5.39 and quick ratio likewise at 4.53. These figures are typical of a company that is in great financial condition. These figures are bloated, however, by the fact that much of the current assets are in the form of accounts receivable. CanGo's accounts receivable turnover is terrible. At just 1.52, the company is collecting on its receivables every 240 days, or 8 months. Having eight months worth of receivable overdue is absurd. Part of the discussion at CanGo right now is centered around finding cash for expansion projects -- there's about 7 months of it sitting in the A/R account. In general, the company has a lot of working capital, $164 million of it. If it wants to expand, there it...
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