Ratio

Pellegrini Southern Inc.

LeBron Sports Equipment Inc.

Current

$1\mathrm{.}33$

$1\mathrm{.}66$

Quick

$0\mathrm{.}75$

$0\mathrm{.}93$

Which of the following statements are true? Check all that apply.

LeBron Sports Equipment Inc. has a better ability to meet its short$-$term liabilities than Pellegrini Southern Inc.

If a company$$s current liabilities are increasing faster than its current assets, the company$$s liquidity position is weakening.

An increase in the quick ratio over time usually means that the company$$s liquidity position is improving and that the company is managing its short$-$term assets well.

Compared to Pellegrini Southern Inc., LeBron Sports Equipment Inc. has less liquidity and a lower reliance on outside cash flow to finance its short$-$term obligations.

An increase in the current ratio over time always means that the company$$s liquidity position is improving.