a)
To discuss:
Current and quick ratio.
Introduction:
Current ratio: It is the ratio of current assets to current liabilities which shows the ability of the corporation to pay of its current liabilities.
Quick ratio: It is used to determine the company’s capability to satisfy dues using only liquid assets. Inventory is excluded from this ratio to show liquidity in better manner.
b)
To discuss:
Liquidity position.
Introduction:
Current ratio: It is the ratio of current assets to current liabilities which shows the ability of the corporation to pay of its current liabilities.
Quick ratio: It is used to determine the company’s capability to satisfy dues using only liquid assets. Inventory is excluded from this ratio to show liquidity in better manner.
c)
To discuss:
Inventory turnover ratio and the industry average.
Introduction:
Inventory turnover: It is the number of times average inventory is converted into sales during a period is an asset management ratio that tells the manager how effectively they are managing the firm.
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