A few liquidity ratios for Alpha Company are shown below. 2016 2015 2014 2013 2012 Ind. Average
Fantastic news! We've Found the answer you've been seeking!
Question:
A few liquidity ratios for Alpha Company are shown below. | ||||||
2016 | 2015 | 2014 | 2013 | 2012 | Ind. Average | |
Current ratio | 1.9 | 1.8 | 1.8 | 1.9 | 1.9 | 1.8 |
Quick Ratio | 0.9 | 0.8 | 1.0 | 0.9 | 1.0 | 0.9 |
Cash Ratio | 0.2 | 0.1 | 0.2 | 0.2 | 0.2 | 0.5 |
1) What do these liquidity ratios reveal to you about Alpha Company's liquidity position?
2) Based on the ratios shown above, what additional ratios would you like to review (AND WHY?) in order to get a clearer picture of the strengths or weaknesses of Alpha Company's liquidity position?
Related Book For
Financial Management Theory And Practice
ISBN: 978-0176583057
3rd Canadian Edition
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
Posted Date: