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141 Based on the review of the
normalized Income statements, the Company’s overall financial performance would be considered well above average. The Company has demonstrated consistent top‐line performance which they have translated into better‐than‐industry results.
Business Ratio Analysis and Discussion Business ratio analysis is another important facet of financial statement analysis. This analysis is extremely useful in helping the valuator understand the operating relationship between the balance sheet and operating results. The valuator has used the normalized financial statements to develop select business/financial ratios and compared them to the industry data from RMA 2005‐2006 Annual Statement Studies. This comparative analysis is
shown in the following table Table 18 Selected Financial Ratios ‐ Normalized Basis Liquidity Ratios: Liquidity is a measure of the quality and adequacy of current assets to meet current obligations as
they come due in other words, whether a business can quickly convert its assets to cash (without a loss in value) in order to meet its immediate and short term obligations. The
current ratio calculates the ratio of current assets to current liabilities current assets ÷ current liabilities, providing a rough indication of whether the Company can pay near‐term obligations (e.g.,
trade payables, short‐term notes. A higher current ratio indicates that the firm is better positioned to handle its short‐term obligations. In addition, it is critical to look
at the composition of the Share with your friends: 
