e quick ratio, interest coverage, and the number of days sales represented by accounts receivable. The ratios are presented in Table 1 (Current), Table 2 (Quick), Table 3 (interest coverage), and Table 4 (Day Sales/Accounts Receivable).
As the data presented in Table 1 (which may be found on the following page) indicate, Nova's current position deteriorated from a position superior to the industry norm in 1987 to a position of virtual parity with the industry norm in 1989. The current positions of both the company and the industry deteriorate over this period; however, deterioration at Nova was more severe than that for the industry as a whole. In late-1989, it was incumbent upon Nova management to adopt financial strategies and policies that would stabilize the company's current position.
Current Ratios 1987-1989 (Nova and Industry Norm)
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Year Nova Industry__
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