1. Case on Microsoft Corporation
... quick ratio is 94% above the industry average (FY 91: Microsoft 3.3 vs. industry 1.7). The quick ratio is basically the current ratio minus inventory. The quick ratio measures the firm's ability to use cash to pay for immediate liabilities. The high quick ratio is due to the fact that ... increase this ratio by 14% over the past five years (FY 87-91: 30.1%, 33.0%, 30.4%, 30.4%, 34.3%, respectively). Activity Ratio's The inventory turnover is 40% that of the industry (FY 91: Microsoft 39.2 vs. industry 28.1). The high ratio means that Microsoft has faster moving merchandise ... adminis...
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- Grade Level: High School