Question
Using the ratios and information given below for PepCo Company, analyze the short-term liquidity of the firm. 2015 2014 Current ratio .86 .80 Quick ratio
Using the ratios and information given below for PepCo Company, analyze the short-term liquidity of the firm.
2015 2014
Current ratio .86 .80
Quick ratio .65 .61
Cash flow liquidity ratio .69 .62
Average collection period 32 days 30 days
Days inventory held 74 days 74 days
Days payable outstanding 157days 163 days
Cash conversion cycle (51 days) (59 days)
Cash flow from operations (in millions) $2,508 $2,232
Net sales (in millions) $13,957 $13,074
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Cost Accounting
Authors: Edward B. Deakin, Michael Maher
3rd Edition
0256069190, 978-0256069198
