Describe and evaluate the financial environment at Genesis by using ratio analysis of the company.

Genesis’ financial environment can be evaluated using ratio analysis, which compares different metrics to provide insights into the company’s performance. For example, their current ratio (Current Assets/Current Liabilities) indicates their short-term liquidity; for Genesis it was 1.84 in 2005, suggesting that they are able to meet their short-term obligations with ease. Their debt-to-equity ratio (Total Debt/Equity) of 0.63 in 2005 shows that they have a relatively low level of leverage and are not overly reliant on external sources of financing. Finally, their profit margin (Net Income/Sales) stood at 5% in 2005, indicating a healthy level of profitability given the industry average of 4%. Overall, these ratios suggest that Genesis is well positioned financially and should have no trouble meeting its obligations going forward.