Short-Term Liquidity Ratios}

Larry, Curly, and Moe companies operate in the same industry. Each company provided financial information to the public containing three ratios for 2017 and 2018.

\section*{Required:}
Explain which company appears to be the most liquid at December 31, 2018.
\section*{OBJECTIVE 4 Brief Exercise

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(in millions) Larry Curly Current ratio 12/31/18 2.3 to 1 1.9 to 1 Moe 1.8 to 1 12/31/17 2.0 to 1 1.5 to 2 2 to 1 Inventory turnover ratio 12/31/18 5.6 times 4.6 times 6.0 times 12/31/17 7.6 times 5.8 times 9.6 times Quick ratio 12/31/18 2.2 to 1 1.9 to 1 0.7 to 1 12/31/17 1.0 to 1 1.4 to 1 1.2 to 1