Question: The current ratio equals current assets divided by current liabilities. Cardinal Corporation has a current ratio of 0.95. The industry average current ratio is 1.89.
The current ratio equals current assets divided by current liabilities. Cardinal Corporation has a current ratio of 0.95. The industry average current ratio is 1.89. Cardinal Corporation appears to have ______________ relative to its industry peers.
| a. | good investment value | |
| b. | poor profitability | |
| c. | short-term liquidity problems | |
| d. | long-term solvency problems | |
| e. | low stock market value |
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
