Calculating short-term liquidity with current ratio

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Reference no: EM13826381

Problem:

For each company listed below, calculate the ratios in the table provided and answer the following questions.

601_calculate the ratios.jpg

Ratio	WD-40 Company	Xerox	Sirius XM Radio	Pepsico
Current
Quick
Operating Margin
Debt-to-Equity
Gross Profit Margin

Which company has the strongest short-term liquidity as measured by the current ratio?
Which company is NOT able to pay off all current liabilities at this time?
Which company has very little money tied up in inventory as measured by the quick ratio?
Operationally, which company had the best year?
Which company has the strongest gross margin, but at the same time has the worst Debt-to-Equity ratio?

Additional Information:

This question is basically belongs to the Finance as well as it discusses about calculating short-term liquidity with current ratio, strongest gross margin, debt to equity ratio, etc for a firm.

Reference no: EM13826381

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