Write a response to a company given below discussing its profitability, debt-paying ability, and liquidity. Also, what strategic decisions should be made by the firm to support the improvement?

AutoZone Company’s Scenario:

AutoZone’s financial statements indicate the following:

1. There is a net profit margin of 14.5%.
2. The firm’s long-term debt has increased significantly over the past year and could impact its future debt-paying ability if it continues to increase.
3. Additionally, AutoZone’s liquidity ratio of 0.79 is alarming because a ratio below 1 suggests that the company is having difficulty meeting its short-term financial obligations.

Answer rating: 100% (QA)

Dear AutoZone Management I have reviewed your companys financial statements and would like to provide an analysis of your profitability debtpaying abi... View the full answer