The current ratio assumes, for example, that inventory will always be turned into cash within a year. This may be true for many companies, but in certain industries and situations, inventory isn ...

Business assets are usually broken out through the quick and current ratio methods to analyze liquidity types and solvency. Examples of liquid assets may include cash, cash equivalents ...

cash equivalents, accounts receivable, marketable securities, inventory, and prepaid expenses). Returning to the example above, let’s take a look at how Apple’s current ratio (as of March 27th ...