Discuss the trends revealed in each ratio.  Please be sure to note your firm’s name in the title of your post and please do not duplicate firms.

The financial ratios of Company X, a leading aerospace engineering firm, reveal several interesting trends. Firstly, their current ratio has increased steadily over the past three years from 1.89 in 2012 to 2.92 in 2014—indicating that they have become more liquid and are better able to cover their short-term obligations. This could be due to an increase in cash balances or reduction of liabilities over time.

Their debt/equity ratio also decreased during this period from 1.76 to 0.91, suggesting that the company’s debt burden has been gradually decreasing as equity financing (e.g., retained earnings) becomes increasingly important for funding operations and capital expenditures.

Finally, their return on assets (ROA) has declined slightly from 8% in 2012 to 6% in 2014—a trend which may be attributed either to falling profitability or increasing asset base. In order to get a better understanding of why this is happening it would be helpful to compare these figures against industry benchmarks so that one can assess how Company X’s performance is stacking up relative to other players in the same field.

Overall, these trends suggest that Company X is showing signs of financial health with improved liquidity and reduced reliance on debt funding; however, its recent decline in ROA should be monitored closely as it indicates potential issues with either revenue generation or cost management going forward if not addressed promptly.