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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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