4. How can the business use liquidity ratios, such as the current ratio, quick ratio, cash ratio, and working capital, as well as solvency ratios, like the debt-to-equity ratio, interest coverage ratio, debt service coverage ratio, and fixed charge coverage ratio, to monitor and improve its financial performance during inflationary periods

Answer rating: 100% (QA)

During inflationary periods businesses can use liquidity and solvency ratios to monitor and improve their financial performance in several ways 1 Liqu... View the full answer