I am comparing a companies liquidity between 2 years in the

Reference no: EM13482301

I am comparing a companies liquidity between 2 years. In the year 2007 I find it has a higher current ratio, a higher cash currentdebt coverage, a higher working capital and a more frequent inventory turnover than in 2008. From what I understand this meansthat the the company is able to pay back off its liabilities easierin 2007 than 2008 (its more liquid). However I calculated the accounts receivable turnover and found that receivables turnoverfaster in 2008 than in 2007. How can I justify this?? Overall which year is better as far as liquidity is concerned?

Reference no: EM13482301

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