Is higher Which 2 marks for each ratio Arrow Root or lower company is line; total of 30 marks better? better! Liquidity Example: Working Capital: Current Assets - Current Liabilities $ 1,372 910 Higher Arrow Current Ratio: Current Assets Current Liabilities Quick Ratio: Cash + Short-term Investments + Accts Receivable Current Liabilities Receivable Turnover: Net Credit Sales Accounts Receivable Average Collection Period: 365 Receivable Turnover Inventory Turnover: Cost of Goods Sold Inventory Days in Inventory: 365 Inventory Turnover Solvency Debt to Total Assets: Total Liabilities Total Assets Times Interest Earned Profit+Interest Expense+Income Tax Expense Interest Expense Debt to Total Equity: Total Liabilities Total Equity