What can you infer about the reliability of these ratios to signal financial health stability or change in a firm?.
Financially weaker engineering corporations often go bankrupt at some point due to macroeconomic c Show more Financially weaker engineering corporations often go bankrupt at some point due to macroeconomic change such as occurred in (1) commercial steel industry during the early 1980s OR (2) commercial construction industry and (3) commercial automotive industry during the recent Great recession 2007 2009. Financially weaker engineering corporations also often go bankrupt due to inability to keep pace with technological change such as occurred during the (4) commercial PC and (5) software revolution in the late 1970s the (6) commercial internet revolution from 1993 and (7) commercial handheld mobile smartphone from 1994 & (8) touchscreen tablet revolution from 2010. Financial Health ratios are often the first indicator of a corporations inability to adapt and survive economic or technological change. Financial Health Grading Rubric 10 pts per section: For one of the eight industry/periods of change identified above (1) discuss the ability of at least two different categories of financial health ratios to signal corporate FH readiness to survive the macroeconomic or technology change. (2) Choose one corporation that succeeded and one that eventually went bankrupt or was bought out. (3) What can you infer about the reliability of these ratios to signal financial health stability or change in a firm? Show less
