Bluestone Metals, Inc., is a metal fabrication firm that manufactures prefabricated metal parts for customers in a variety of industries. The firm€™s motto is €œIf you need it, we can make it.€ The CEO of Bluestone recently held a board meeting during which he extolled the virtues of the corporation. The company, he stated confidently, had the capability to build any product and could do so using a lean manufacturing model. The firm would soon be profitable, claimed the CEO, because the company used state-of-the-art technology to build a variety of products while keeping inventory levels low. As a business press reporter, you have calculated some ratios to analyze the financial health of the firm. Bluestone€™s current ratios and quick ratios for the past 6 years are shown in the table below:

What do you think of the CEO€™s claim that the firm is lean and soon to beprofitable?

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2007 2008 2009 2010 2011 2012 Current ratio 1.2 1.4 13 1.6 1.8 2.2 Quick ratio 13 12 0.8 060.4