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Current ratio
The current ratio is expressed as the number of dollars of current assets for each dollar of
current liabilities. A current ratio of 1 or more means that current assets are more than
current liabilities and the company should not face any financial liquidity problem.
In 2012, the current ratio of 1.94:1 is the highest compared to others 5 years which means
that it contains more current assets than current liabilities which indicate good financial
liquidity.
Quick ratio
The quick ratio is also known as the acid-test ratio. It is a conservative variation of the
current ratio. The quick ratio measures a company’s immediate debt-paying ability. A
quick ratio greater than 1 means that a company is sufficiently able to meet its short-term
obligations.
In 2012, the quick ratio of 1.41:1 is the highest compared to others 5 years while 0.68:1
(In 2016) is the lowest ratio among the 5 years which means that it’s less liquid (has less
ability to pay its short-term debt).
Accounts Receivable Turnover
