financial statement analysis

The current ratio of Happy Hospital was 2.89 and its quick ratio was 2.63. The current ratio reveals whether a company is capable of paying its short term debt. The quick ratio has the same objective, but the measure is more sensitive since it subtracts inventory from the numerator of the formula leaving the most liquid assets available to pay the debt. The general rule is for a current ratio to be good it must be above 1.0. Both the current ratio and quick ratio of the company are excellent. The net margin of Happy Hospital is 6.49. A net margin measures the profitability of a company. In order to determine whether a net margin is good or not one must consider the industry in which the company participates. A good database to find the industry ratios for different business industries is