Computing liquidity ratios is <u>straightforward</u> but interpreting them is <u>more</u> <u>complex</u>.
Liquidity ratios are used to measure a company's ability in order to pay debt obligations and its margin of safety for the calculation of metrics, this includes the current ratio, operating cash flow ratio, and quick ratio.
Creditors and investors interpret the liquidity ratios. These creditors and investors like to see high liquidity ratios, such as two or three. So when the ratio is the higher, the more likely a company is able to pay its short-term bills.
Thus, when a liquidity ratio of a company is less than one it means that the company is facing a negative working capital and is experiencing a liquidity crisis.
Hence, option C is correct.
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Slaves should not be included when counting a states population to determine representation in congress.
Top of social hierarchy<span> in</span>China<span> Emperors officials who were culture and social elite • From wealthy land owning families who ... mobility than did the caste system.</span>
<span>Kirk should
investigate the direct cost of studying at the college, including tuition and
study material costs. He should also research living costs, such as costs of accommodation,
food and transport. In addition, he should consider the cost of transport back
home during vacations. </span>