In general, which is better, high liquidity ratio values or low liquidity ratio values? Is it possible for the current and quick ratio values to get too large? How might this occur? What problem does it indicate the firm may be experiencing?

Consider a large supermarket chain (for example, Kroger, the parent corporation of Frys Supermarkets) as opposed to a typical department store, such as Macys. Which firm would you expect has the highest net profit margin? Which firm would you expect to have the highest inventory turnover and/or asset turnover? Explain the reasoning behind your answers. Considering these factors, can you develop a general relationship between profit margins and turnover? Explain.