Based on your review of the financial statements, suggest a key insight about the financial health of the company.

Based on a review of the company’s financial statements, it is clear that the company has been experiencing difficulty in recent years. The most telling metric is the decline in net income – from $2.8 million in 2017 to $1.5 million in 2019, indicating that there has been a significant drop in profitability. In addition, total liabilities have steadily increased over the same period and now exceed total assets by nearly twofold, suggesting that there may be financial constraints limiting operational capacity at present. Lastly, cash flows have remained relatively consistent but still remain below their 2017 peak levels which could mean there is limited access to additional capital if needed.

Overall, this data suggests that while the company may not be facing any imminent financial distress it appears to be having difficulty growing its business and become more profitable due to current economic conditions or other limitations such as lack of access to credit or investment capital. It would therefore be prudent for management to identify ways for improving operations and generating additional sources of revenue going forward so as to return the company back onto a path of sustained growth and profitability.