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Posted on Jul 26, 2024

How would you interpret a current ratio of 2.2 with an industry average of 3.1? a. The company is 2.2x more liquid than the industry.

How would you interpret a current ratio of 2.2 with an industry average of 3.1?

a.
The company is 2.2x more liquid than the industry.

b.
The company is on the verge of bankruptcy.

c.
The company turns its sales into cash at a rate of 2.2x per year.

d.
The company has $2.20 in current assets for every $1 in current liabilities.

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Previous Question Next Question

	a.	The company is 2.2x more liquid than the industry.
	b.	The company is on the verge of bankruptcy.
	c.	The company turns its sales into cash at a rate of 2.2x per year.
	d.	The company has $2.20 in current assets for every $1 in current liabilities.