Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Home Depot's 2011 current ratio is 1.33 and the quick ratio is 0.28 . In the same year, its industry group average is 2.5 for

image text in transcribed
Home Depot's 2011 current ratio is 1.33 and the quick ratio is 0.28 . In the same year, its industry group average is 2.5 for the current ratio and 1.00 for the quick ratio. What does this information tell us? Home Depot is less efficient in generating return than its industry peers. Home Depot's liquidity is better than its industry peers in general. Home Depot depends too heavily on inventory turnover. Home Depot is likely to achieve a high profit in the long run. Based on the current ratio and the quick ratio. Home Depot is liquid

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions