Bluestone Metals, Inc., is a metal fabrication firm that manufactures prefabricated metal parts for customers in a variety of industries. The firm€™S motto is €œelf you need it, we can make it.€0 The CEO of Bluestone recently held a board meeting during which he extolled the virtues of the corporation. The company, he stated confidently, had the capability to build any product and could do so using a lean manufacturing model. The firm would soon be profitable, claimed the CEo, because the company used state-of-the-art technology to build a variety of products while keeping inventory levels low. As a business press reporter, you have calculated some ratios to analyze the financial health of the firm. Bluestone€TMS current ratios and quick ratios for the past 6 years are shown in the table below: 2007 2008 2009 2010 2011 2012 Current ratio 1.2 1.4 1.3 1.6 1.8 2.2 Quick ratio 1.1 1.3 1.2 0.8 0.6 0.4 What do you think of the CEO€™S claim that the firm is lean and soon to beprofitable?
Bluestone Metals, Inc., is a metal fabrication firm that manufactures prefabricated metal parts for customers in a variety of industries. The firm€™S motto is €œelf you need it, we can make it.€0 The CEO of Bluestone recently held a board meeting during which he extolled the virtues of the corporation. The company, he stated confidently, had the capability to build any product and could do so using a lean manufacturing model. The firm would soon be profitable, claimed the CEo, because the company used state-of-the-art technology to build a variety of products while keeping inventory levels low. As a business press reporter, you have calculated some ratios to analyze the financial health of the firm. Bluestone€TMS current ratios and quick ratios for the past 6 years are shown in the table below: 2007 2008 2009 2010 2011 2012 Current ratio 1.2 1.4 1.3 1.6 1.8 2.2 Quick ratio 1.1 1.3 1.2 0.8 0.6 0.4 What do you think of the CEO€™S claim that the firm is lean and soon to beprofitable?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Solve
Transcribed Image Text:Bluestone Metals, Inc., is a metal fabrication firm that
prefabricated
customers in a variety of industries. The firm€™s
motto is €œlf you need it, we can make it.€D The CEO
of Bluestone recently held a board meeting during
which he extolled the virtues of the corporation. The
manufactures
metal
parts
for
company, he stated confidently, had the capability to
build any product and could do so using a lean
manufacturing model. The firm would soon be
profitable, claimed the CEO, because the company
used state-of-the-art technology to build a variety of
products while keeping inventory levels low. As a
business press reporter, you have calculated some
ratios to analyze the financial health of the firm.
Bluestone€TMs current ratios and quick ratios for the
past 6 years are shown in the table below:
2007 2008
2009
2010
2011
2012
Current ratio
1.2
1.4
1.3
1.6
1.8
2.2
Quick ratio
1.1
1.3
1.2
0.8
0.6
0.4
What do you think of the CEO€™S claim that the firm
is lean and soon to beprofitable?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education