a$.$ Calculate each of the following ratios for all three companies: current ratio, quick ratio, inventory turnover, average collection period, total asset turnover.

b$.$ What company is in the position of having greatest liquidity?

c$.$ Would you say that the three companies exhibit similar performance or quite different performance in terms of collecting receivables? Why do you think that might be$?$ you think that means?

a$.$ For the three companies, the current ratios are: $($Round to three decimal places.$)$

Data table

$\backslash$table$[[,$Procter and Gamble Colgate$-$Palmolive,Clorox$],[$Current ratio,,$]]$

$\backslash$table$[[,$Procter & Gamble,Colgate$-$Palmolive,Clorox$],[$Sales$,$$$65,238,$$$15,192,$$$5,875$Interpreting liquidity and activity ratios$$The$$ table, LOADING...$,$ shows key financial data for three firms that compete in the consumer products$$ market: Procter$$ & Gamble,$$ Colgate$-$Palmolive, and Clorox.

a$.$ Calculate each of the following ratios for all three$$ companies: current$$ ratio, quick$$ ratio, inventory$$ turnover, average collection$$ period, total asset turnover.

b$.$ What company is in the position of having greatest$$ liquidity?

c$.$ Would you say that the three companies exhibit similar performance or quite different performance in terms of collecting$$ receivables? Why do you think that might$$ be$?$

d$.$ Which company has the most rapid inventory$$ turnover? Which company appears to be least efficient in terms of total asset$$ turnover? Are your answers to those questions a little$$ surprising? If a company is best at inventory turnover and worst at total asset$$ turnover, what do you think that$$ means?

Question content area bottom

Part $1$

a$.$ For the three$$ companies, the current ratios$$ are:$($Round to three decimal$$ places.$)$

Procter and Gamble

Colgate$-$Palmolive

Clorox

Current ratio