✦ Financially Healthy → Strong liquidity, low debt, and growing equity; current assets exceed liabilities; retained earnings are positive; diversified assets ensure stability and resilience;
✦ Overleveraged → Excessive debt burden with a high debt-to-equity ratio; heavy interest payments reduce profitability; limited financial flexibility increases default risk;
✦ Liquidity Crisis → Cash reserves are critically low; current liabilities exceed current assets; difficulty converting assets into cash leads to delayed payments and operational risks;
✦ Technically Insolvent → Liabilities exceed assets, resulting in negative equity; high default risk with limited recovery options; potential bankruptcy without restructuring or external intervention.
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