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Is the current ratio measure the firm liquidity

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Reference no: EM132579318

Question 1: The current ratio and inventory turnover ratios both help us measure the firm's liquidity. The current ratio measures the relationship of a firm's current assets to its current liabilities, while the inventory turnover ratio gives us an indication of how long it takes the firm to convert its inventory into cash.

  • True or False?

Reference no: EM132579318

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