A&F’s stock price has been going down for weeks. An analyst investigating the company discovers that A&F has a healthy current ratio of 2.79, a strong quick ratio of 1.79, and a quickening receivable collection period of 43 days. The analyst decides to predict a relatively positive outlook for A&F based largely on these three ratios. Do you agree with the analysts’ assessment? Explain why or why not.
please see note from the professor:
you are required to support your position by using at least two references from an academic journal or prominent business publication (e.g., The Wall Street Journal, Barron’s, Fortune, Investor’s Business Daily, etc.). Additionally, one of these references must be recent. A recent reference is one that has a publication date that is less than one year old as of the beginning of the semester (mar 13, 2023). Importantly, references from websites do not qualify unless those websites are part of a reputable print publication. For example, Investopedia.com can be used, but it does not count as a reference that satisfies the criteria of a recent reference.
