Speedster Athletic Company’s current liabilities at the end of 2011 show a significant decrease from the previous year, including a $59,000 decrease in the line of credit. Speedster Overall the company’s current ratio is above industry average which indicates that the operations are generating enough revenue to cover normal expenses. However, the company’s long term debt increased significantly during the 2011 fiscal year. This reliance on borrowed funds will increase interest expenses and could cause concern to investors and creditors. Speedster Athletics Company’s debt ratio is has been increasing over the past three years stands at 57.0% as of the 2011 year end, which is more than double the industry average of
