Current ratio: taken from a graph from mergent online database

Telsa and Royal Caribbean group

2021 - 1.38 0.49

2020 - 1.88 0.95

2019 - 1.13 0.15

2018 - 0.83 0.17

2017 - 0.86 0.18

Can you help me with this discussion question

What is the difference between the two companies on this ratio? What is a plausible explanation as to why they would differ? Is one company clearly different than the other?

Are there economic or end-market influences that explain why the ratios differ? What might they be?

Over time, is each company’s overall financial performance improving, declining, or is something strange going on?

Do you think evaluating financial statements is a good idea?

What do you regard as some of the shortcomings of financial ratio analysis?

Answer rating: 100% (QA)

The current ratio is a liquidity ratio that measures a companys ability to pay its shortterm obligations with its current assets A higher current ratio indicates that a company is more liquid and has ... View the full answer