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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
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
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