If a firm has high current and quick ratios,this always is a good indication that a firm is managing its liquidity position well.

Question

Quizplus · Accepted Answer

High current and quick ratios indicate that a firm has more short-term assets relative to its short-term liabilities, which suggests good liquidity. However, excessively high ratios may also indicate that the firm is not using its assets efficiently or is under-leveraged, which could be a sign of poor financial management.

If a Firm Has High Current and Quick Ratios,this Always