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 Companys Scenario AutoZones financial statements indicate the following There is a net profit margin of 14 5 The firms long term debt has increased significantly over the past year and could impact its future debt paying ability if it continues to increase Additionally, AutoZones 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

Question: 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

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:

There is a net profit margin of 14.5%.
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.
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.

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