Replies to post #61338 on Capstone Companies Inc (CAPC)

[Salve Lucrum]

Sazo, can you clarify this statement?

their balance sheets look better now than they did 5 years ago...

I ran an Acid Test or Quick Ratio on CHDO going back 5 years to year end 2007, and then for year end 2010 and finally the first 9 months of 2011.

The Balance Sheet showed the following ratios:

2007 - 1.281

2010 - .704

2011 - .892 (thru September 2011)

As you are undoubtedly aware, ratios below 1.0 indicate a company that is in a poor position to cover its debts and is therefore considered a relatively high loan risk by lending institutions.

So I'm a little confused as to how the their balance sheet looks better now?