Given the information above the firms liquidity is:

a. Cash on hand is fine but inventory too low.

b. While one indicator is fine, it looks like the stock on hand is too high.

c. Overall the firms liquidity is too low across all dimensions.

d. Overall quite good.

20x1 20x2 20x30 Current Ratio 1 to 2.21 2.20 2.36 Acid Test 1 to 0.29 0.28 0.32 5.95 5.97 6.14 14.41 14.42 11.84 Credit Given (days) Credit Taken (days) Stock Turnover (days) Gross margin 84.07 81.43 75.57 5.4% 7.3% 7.5% Net margin 2.6% 4.9% 4.7% 1.97 3.08 2.67 Interest Cover (times) Net Gearing % per $1 of equity Net working assets to sales % 62% 57% 67% 15% 14% 14% Retained Profits to sales 0.7% 3.0% 2.8%