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Jamba Juice has posted a cumulative loss over the past five years, which was as much...

Jamba Juice has posted a cumulative loss over the past five years, which was as much as the net income generated in the same five-year period. How would you describe the financial health of Jamba Juice?

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Answer #1

Cumulative loss is when company's debts are more than its profits. It means that over time, the business's debts are greater than the earnings reported on the balance sheet. In case of Jamba Juices the financial health is not good as projected.

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