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  • Capitally Challenged Stocks That Could Be Diluted or Extinguished [View article]
    Alan,

    Shouldn't these criteria be ">"? I'm thinking that increasing liabilities and decreasing assets identifies potential liquidity issues.

    Liabilities / Current Assets: <3 (identify potential liquidity issues)
    Liablities / Adjusted Current Assets: < 5 (haircut AR and Inventory to further define liquidity issues)
    Liabilities / EBITDA: < 6 (identify long-term solvency concerns)
    Mar 15 08:31 am |Rating: +1 -3 |Link to Comment
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