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You are provided with the following information about two retail companies that operate in the same space: Company A has a current ratio of 2.4
You are provided with the following information about two retail companies that operate in the same space: Company A has a current ratio of 2.4 and a quick ratio of 2.0 Company B has a current ratio of 2.3 and quick ratio of 1.2. Which of the following statements are you least likely to agree with?
a) Company A is more liquid than Company B.
b) Company A is carrying less inventory than Company B.
c) Company B, relatively speaking, is carrying more inventory than Company A.
d) I would agree with all of these statements.
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