The current ratio has declined in 2012 as compared to 2011 by .05, which is not very significant. It shows that company has fewer current assets in 2012 as compared to 2011 to meet each dollar of current liabilities.
The return on equity was positive in 2011, while it turned into negative in 2012. It shows that company has not earned any profit in 2012. Therefore the return on equity declined from 7.91% to negative 0.49%/
The day’s receivable is around 20 days in both years, therefore there is no significant change, it means that company has been collecting its account receivable as usual, and there is no big change in collection of account receivables.
The increase in debt ratio by around 6% shows that company is more relying on debt financing rather than equity financing, which will increase the financial leverage of the company
If we look at the overall financial position of the company from these four ratios, it is not very good as the company has not earned enough to shows profit and the company financial leverage is increasing, the more debt might have increased the interest expense, which might have resulted in loss in 2012 as compared to 2011.