Ratios: Which of these looks odd?

Which of these looks odd?

Quick ratio: 0.9

Current ratio: 0.8

Debt Ratio: 1.0

Inventory Turnover: 7.0

Question options:

  • The current ratio can't be lower than the quick ratio
  • Inventory turnover is defined to be less than one
  • There is nothing odd about any of them
  • The debt ratio can not equal one. It is defined to be less than one.

Answer: The current ratio can't be lower than the quick ratio

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