Question
Conduct a comparative analysis of the current and quick ratios for Facebook, Inc. and Twitter, Inc. based on the financial data provided below for the
Conduct a comparative analysis of the current and quick ratios for Facebook, Inc. and Twitter, Inc. based on the financial data provided below for the fiscal year 2023:
Facebook, Inc.:
- Current Assets: $4,000,000
- Current Liabilities: $2,000,000
- Inventory: $500,000
- Cash: $1,000,000
Twitter, Inc.:
- Current Assets: $3,000,000
- Current Liabilities: $1,500,000
- Inventory: $300,000
- Cash: $800,000
Current and quick ratios are liquidity ratios that assess a company's ability to meet short-term obligations. Perform the necessary calculations for both Facebook, Inc. and Twitter, Inc. and analyze the results to compare their liquidity positions. This analysis aids stakeholders in understanding the companies' liquidity risk and financial stability.
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