Subject Business Financial Accounting


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Liquidity Ratio
Current ratio measures the ability of the company to pay its short term liabilities. A current ratio of 2 is considered good. The current ratio of the company is 2.18 which consider well because above 2.
Working capital is a measure of liquidity and overall health of the company. The working capital of the company stood at $1,320 which is indicator of good health of the company.
Quick Ratio measures the company ability to pay its current liabilities only with its quick assets. The ideal acid test ratio is 1, the quick ratio 0.82 which shows the inefficiency of the company to pay off its current liabilities in a short span of time.
Inventory Turnover ratio measures how effectively and efficiently the company has managed its inventory. It shows how many times the company has turned its inventory. The ratio for company is good for and is showing an increasing trend....

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