Is company A seen any major changes in its ratios in the past three years? Which of the three companies (A, B, C) is most
| Is company A seen any major changes in its ratios in the past three years? Which of the three companies (A, B, C) is most liquid in the most current year? How has company A managed short-term liabilities over the last three years? |
| Liquidity Ratios | ||||||||
| Company A | Market Comparison | |||||||
| Year | 2014 | 2015 | 2016 | Current Ratio = Current Assets/ Current Liabilities | Company A | Company B | Company C | Avg |
| Ratio | 4.35 | 5 | 3.1 | 3.1 | 2.03 | 1.02 | 2.05 | |
| Year | 2014 | 2015 | 2016 | Quick Ratio = (Cash+AR)/ Current Liabilities | Company A | Company B | Company C | |
| Ratio | 4.23 | 4.84 | 2.89 | 2.89 | 1.85 | 0.66 | 1.8 | |
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Authors: George M. Constantinides, Milton Harris, Rene M. Stulz
1st Edition
0444535942, 978-0444535948
