Question
Use the following information to comment on liquidity risk and solvency risk for AZV and GLHfor the period2014-2015. AZV GLH 2015 2014 2015 2014 Current
Use the following information to comment on liquidity risk and solvency risk for AZV and GLHfor the period2014-2015.
AZV
GLH
2015
2014
2015
2014
Current ratio
2.4
2.3
1.9
0.9
Quick ratio
1.7
1.6
0.7
0.6
Days accounts receivable outstanding
2
4
37
37
Days inventory held
72
61
71
68
Days accounts payable outstanding
26
22
44
38
Liabilities to assets ratio
0.591
0.469
0.495
0.497
Liabilities to shareholders' equity ratio
1.443
1.448
0.979
0.999
Long term debt to long-term capital ratio
0.454
0.461
0.120
0.131
Long term debt to shareholders' equity ratio
0.831
0.855
0.136
0.151
Operating cash flow to average total liabilities ratio
0.298
0.380
0.364
0.414
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