Orr's Hardware had a cash ratio of 0.12 last year as compared to 0.22 this year. How do you interpret this change?\ Orr's current ratio had to also increase over the past year.\ Orr's liquidity has decreased over the past year.\ Orr's will be bankrupt in less than three months because its cash ratio is less than 0.25 .\ Orr's is less dependent now on its receivables and inventory to pay its current debt than it was one year ago.

Orr's Hardware had a cash ratio of 0.12 last year as compared to 0.22 this year. How do you interpret this change? Orr's current ratio had to also increase over the past year. Orr's liquidity has decreased over the past year. Orr's will be bankrupt in less than three months because its cash ratio is less than 0.25 . Orr's is less dependent now on its receivables and inventory to pay its current debt than it was one year ago