Answered: Over the course of a recent six-month…

Over the course of a recent six-month period, Google’scurrent ratio increased from 8.77 to 11.91. Does this makeGoogle more or less of a credit risk in the eyes of potentiallenders? Why?

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter4: Going Into Debt

Section: Chapter Questions

Problem 7AA

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Question

Over the course of a recent six-month period, Google’s
current ratio increased from 8.77 to 11.91. Does this make
Google more or less of a credit risk in the eyes of potential
lenders? Why?

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