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1. From seeing the trend it is tough to meet its short-term obligations with its most liquid assets. Year by year the quick ratios are decreasing which is not good for company’s health. But in retail sector traditionally have a very low quick ratio such as the. Companies leading the retail sector are able to negotiate very favorable credit terms with suppliers due to their dominance in the market leading to relatively high current liabilities in comparison to their liquid assets. The business environment is also relatively stable in the retail sector and the expansion of operations is incremental which allow such companies to maintain lower acid test ratios without taking too much risk. - See more at: http://accounting-simplified.com/financial/ratio-analysis/quick-acid-test.html#sthash.D3jXTknQ.dpuf
1. From seeing the trend it is tough to meet its short-term obligations with its most liquid assets. Year by year the quick ratios are decreasing which is not good for company’s health. But in retail sector traditionally have a very low quick ratio such as the. Companies leading the retail sector are able to negotiate very favorable credit terms with suppliers due to their dominance in the market leading to relatively high current liabilities in comparison to their liquid assets. The business environment is also relatively stable in the retail sector and the expansion of operations is incremental which allow such companies to maintain lower acid test ratios without taking too much risk. - See more at: http://accounting-simplified.com/financial/ratio-analysis/quick-acid-test.html#sthash.D3jXTknQ.dpuf
1. From seeing the trend it is tough to meet its short-term obligations with its most liquid assets. Year by year the quick ratios are decreasing which is not good for company’s health. But in retail sector traditionally have a very low quick ratio such as the. Companies leading the retail sector are able to negotiate very favorable credit terms with suppliers due
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