understanding annual return information

[richb330]

Hi, i'm struggling to understand the viability of a company from basic information provided on the annual return.

If a company has £0 at the bank, liabilities worth £90k, net worth of £5k and assets worth £110k, what can you tell from this information?

it seems to an uneducated sole as i, that although there is no cash, that the liabilities are of similar value as the assets that the business is doing ok?:|

This is for interest only, i'm not investing.

Thanks for your time?

 

[Scalloway]

The liabilities may include funding for the fixed assets. It can be difficult making much sense of small limited company statutory accounts as the shareholders may just be using it as cash cow and withdrawing most of the profits. Without the P&L you can't tell much about what is happening.