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The liquidity is focus on the two main ratios which are current ratio and quick ratio. The current ratio is measure of the entity's ability to satisfy its obligations in the short term, measure a margin of safety to the creditors (Hoggett. J, Edward. L, Medlin. J & Tilling. M, 2009, pg 1079). Base on the rule, the ratio should be at least 1.5: 1. From the ratio summary sheet, the current ratio of the Club are 4.1: 1, 3.1: 1 and 2: 1 in the year of 2008, 2009 and 2010 respectively. The ratio is not very good because it is keep decreasing from year 2008 to year 2010. The reason may be the current asset of the company is decreasing every year while the current liability is increasing every year. Overall, although the ratio is decreasing, the company still didn't meet any short-term debts, it is a good signal for Shane's company.

Besides, the second main ratio is quick ratio; it also can call as acid test ratio. Quick ratio is one of the limitations of the current ratio is that is includes inventory and prepaid assets in the numerator (Hoggett. J, Edward. L, Medlin. J & Tilling. M, 2009, pg 1080). The rule of the ratios should be at least 0.9: 1. The results of these three years based on the summary sheet are 2.8: 1, 2.0: 1 and 1.2: 1 respectively. It shows that the decreasing in the continuous years. As we know, the higher the ratio, the better the position of company. In year 2008, the company has the highest quick ratio because the company has more cash to do investment or pay liabilities. However, the ratio is decreasing in year 2009 and 2010. It is because the cash is keep decreasing while the liabilities are increasing in the continuous years. Fortunately, the company is still liquid and can afford to pay all the debts.

Financial Stability

Financial stability is consisted debts ratio, equity ratio, capitalization ratio and times interest earned. Debts ratio is the proportion of total assets financed by creditors is important to long-term investors since the creditors have first claim to assets in the event of liquidation (Accounting). The lower the ratio is state that the greater the protection to the creditors. The ratio is 21.2%, 24.6% and 29.1% from year 2008 until year 2010 respectively. The increase of the ratio shows that the protection to the creditor lower because the liabilities are increasing whiles the assets is decreasing.

Equity ratio that evaluate long term-term stability and is sometimes used in place of debt ratio the equity ratio. It's also mean that a company has been aggressive in financing its growth with the debt. The higher the equity ratio, the greater the asset protection to creditors.

The ratio is 78.8%, 75.4% and 70.9% from year 2008, 2009 and 2010 respectively. The decrease of the company showed. Other than that, the capitalization ratio just slightly increases from year 2008 to year 2010 which is 1.3, 1.3 and 1.4 respectively.

Last but not least, asset turnover ratio is useful to determine the amount of sales that are generated from each dollar of assets. As the ratio shown, 2008 is 3.1, 2009 and 2010 have the same average ratio of 3.本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。