Given the following ratios, how well has the company been managing its liquidity for the past two years? Current Year Past Year Ratio Company Industry Company Industry Current ratio 1.9 2.5 1.1 2.3 Quick ratio 0.7 1.0 0.4 0.9 Number of days of receivables 39.0 34.0 44.0 32.5 Number of days of inventory 41.0 30.3 45.0 27.4 Number of days of payables 34.3 36.0 29.4 35.5
Given the following ratios, how well has the company been managing its liquidity for the past two years? Current Year Past Year Ratio Company Industry Company Industry Current ratio 1.9 2.5 1.1 2.3 Quick ratio 0.7 1.0 0.4 0.9 Number of days of receivables 39.0 34.0 44.0 32.5 Number of days of inventory 41.0 30.3 45.0 27.4 Number of days of payables 34.3 36.0 29.4 35.5
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Given the following ratios, how well has the company been managing its liquidity for the past two years?
Current Year Past Year
|
Ratio |
Company |
Industry |
Company |
Industry |
|
Current ratio |
1.9 |
2.5 |
1.1 |
2.3 |
|
Quick ratio |
0.7 |
1.0 |
0.4 |
0.9 |
|
Number of days of receivables |
39.0 |
34.0 |
44.0 |
32.5 |
|
Number of days of inventory |
41.0 |
30.3 |
45.0 |
27.4 |
|
Number of days of payables |
34.3 |
36.0 |
29.4 |
35.5 |
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