Question: Task:2 Ratios Current ratio Alpha &Co. Beta & Co. Theta & Co. 0.75:1 2.05: 1 3 .5: 1 Quick ratio 0.5:1 1.25:1 2.5:1 Inventory turnover
Task:2 Ratios Current ratio Alpha &Co. Beta & Co. Theta & Co. 0.75:1 2.05: 1 3 .5: 1 Quick ratio 0.5:1 1.25:1 2.5:1 Inventory turnover ratio 4 times 6 times 8 times Average Collection Period 60 days 70 days 45 days Average payment period 70 days 70 days 65 days Task:2 Ratios Current ratio Alpha &Co. Beta & Co. Theta & Co. 0.75:1 2.05:1 3.5: 1 Quick ratio 0.5:1 1.25:1 2.5:1 Inventory turnover ratio 4 times 6 times 8 times Average Collection Period 60 days 70 days 45 days Average payment period 70 days 70 days 65 days You are required to comment individually on each ratios of the three companies given above. Your comments must focus on which company has a better ratio, why and what impact it has on its liquidity. (each comment carry 1 mark per ratio)
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