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1 financial ratios dont do you much good by themselves


1. Financial ratios don't do you much good by themselves. Explain.

2. What is the reasoning behind using the current ratio as a measure of liquidity?

3. Why do we need the quick ratio when we have the current ratio?

4. A company's terms are net 30 and the ACP is 35 days. Is that cause for alarm? Why or why not?

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Finance Basics: 1 financial ratios dont do you much good by themselves
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