Explain which company appears to be the most liquid

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Reference no: EM13938918

SHORT-TERM LIQUIDITY RATIOS

Below are three ratios calculated for Huey, Louie, and Dewey Companies for 2008 and 2009.

(In millions)		Huey	Louie	Dewey
Current ratio	12/31/09	2.8 to 1	2.3 to 1	1.8 to 1
	12/31/08	2.0 to 1	1.5 to 1	2.2 to 1
Inventory turnover ratio	12/31/09	6.9 times	5.8 times	8.0 times
	12/31/08	7.6 times	5.8 times	9.6 times
Quick ratio	12/31/09	2.5 to 1	2.1 to 1	0.5 to 1
	12/31/08	1.0 to 1	1.4 to 1	1.2 to 1

Required:

Explain which company appears to be the most liquid.

Reference no: EM13938918

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