Accounting & Finance: Company G Custom Essay

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Accounting & Finance: Company G Custom Essay

Both the current and quick ratio shows the liquidity position of the firm, and hence represents the ability to meet the short-term obligations. Nonetheless, the ratios show that there was a fall in the current ratio, which represents the ratio of current assets to current liabilities from 1.86 to 1.78 versus the lower quartile of 1.4. The quick ratio fell from 0.64 to 0.42, which is between the lower quartile and median quartile of 0.6 and 0.9, and the quick ratio is the ratio of quick assets to current liabilities.

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