Question: You have 3 different companies with the same current liabilities. However, the second company has a greater number of inventories than the first company and
You have 3 different companies with the same current liabilities. However, the second company has a greater number of inventories than the first company and the third company a much greater inventory level than the others. If everything else remains the same, and using the Working Capital Ratio to analyze the liquidity ratio from best to worse, which would have the best corporate liquidity ratio?
Company A, Company B, Company C
Company C, Company A, Company B
Company A, Company C, Company B
Company C, Company B, Company A
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