Ratio analysis is a fundamental tool used for gauging an enterprise's financial health, and thus users of this tool must have a comprehensive knowledge of its application. In this case, students will be asked to make decisions by analyzing the financial ratios of a rolling stock company. The case will discuss the financial situation of Braithwaite & Co Ltd., which has been facing significant cumulative losses in the past few years, and assess how the firm has managed to sustain itself in the competitive market. The case involves questions over the shareholders' trust in the management, and puts forward the dilemma of the company's future prospects.