Current Ratio of Three Leading Companies 3.00 2.50 |2.00 1.50 BHP RIO 1.00 FMG 0.50 0.00 2016 2017 2018 2019 2020 Years Current Ratio

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:James A. Heintz, Robert W. Parry
Chapter15: Financial Statements And Year-end Accounting For A Merchandising Business
Section: Chapter Questions
Problem 4CE
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Does the information indicate whether the current ratio will be useful in predicting financial failure in terms of the trends shown? Discuss.

Current Ratio

 

2016

2017

2018

2019

2020

BHP

1.44

1.85

2.51

1.89

1.45

RIO

1.61

1.71

1.98

1.56

1.80

FMG

1.48

1.18

1.33

1.37

2.25

 

Current Ratio of Three Leading Companies
3.00
2.50
|2.00
1.50
ВНР
RIO
|1.00
FMG
0.50
0.00
2016
2017
2018
2019
2020
Years
Current Ratio
Transcribed Image Text:Current Ratio of Three Leading Companies 3.00 2.50 |2.00 1.50 ВНР RIO |1.00 FMG 0.50 0.00 2016 2017 2018 2019 2020 Years Current Ratio
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