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[sharechat] Financial Analysis - TEL


From: "Tony" <tony@ltdrisk.com>
Date: Thu, 24 May 2001 23:24:38 +1200


After many years of just glancing over "the theory" I have begun building a
complete set of financial ratios from my text book and applied them to TEL(a
nnual report 2000), to start with.

I note that in the Measures of Liquidity section, TEL's current ratio (cur a
ssets/cur liabs) is less than 1 and its net working capital (cur assets - cu
r liabs)is negative for 1999 and 2000.

Can anyone explain why the nature of TEL's business allows this when the lit
erature considers the above as not good?

TonyDB


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