Bluestone Metals Inc. is a metal fabrication firm that manufactures prefabricated metal parts for customers in a variety of industries. The firm’s motto is “If you need it, we can make it.” The CEO of Bluestone recently held a board meeting during which he said that the company had the capability to build any of its products using a lean manufacturing model that allowed the company to keep inventory levels low. As an investor, you have calculated some ratios to analyze the firm’s performance. Bluestone’s current ratios and quick ratios for the past 6 years are as follows:

What do you think of the CEO’s claim that the firm’s manufacturing process allows it to keep inventories low?

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2018 2014 2015 2016 2017 2019 Current ratio Quick ratio 1.2 1.3 1.4 1.6 1.8 2.2 1.3 0.8 1.1 1.2 0.6 0.4