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Rock Castle Case Study

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Rock Castle Case Study
The result of the ratio analysis is showing that Rock Castle is in a good financial position. The current ratio is 9.49 is way more than having 2:1 ratio. However, the current debt ratio of the company is 59.1% which indicated that we have a high percent of the debt, we must take action in order to find alternatively activates in order to bring this percentage down to a least to the 40s. Also, the analysis shows the profit margin is really good, which is 35.56%. The percentage of the sales in the dollar is high which indicate that we are making almost 36 cents per dollar.

As I can see the only thing that we have to take off is the debt ratio. I recommend doing an analysis of the clients that have any kind of debt in the company. I think


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