An increase in the current ratio over time is always a good indication of increased liquidity of a firm.

Name: An increase in the current ratio over time is always a good indication of increased liquidity of a firm.
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Quizplus · Accepted Answer

An increase in the current ratio can indicate improved liquidity, but it might also result from accumulating inventory or receivables that are not easily convertible to cash, which does not necessarily signal financial health improvement.

An Increase in the Current Ratio Over Time Is Always