Financial performance of yahoo and google
Company A: Quick ratio = .75, Current ratio = 2.0
Company B: Quick ratio = 1.2, Current ratio = 1.5
Overall, Company B is doing better than Company A based on these two ratios alone. The quick ratio measures a company’s ability to pay off its current liabilities with assets that can be converted into cash quickly. Company B has a higher quick ratio of 1.2 compared to 0.75 for Company A which indicates they are better able to cover their immediate obligations and have more liquid assets available if needed in the near future.
The current ratio looks at a company’s overall liquidity and measures its ability to meet financial obligations using both its current assets and liabilities. In this case again, Company B has the advantage with a higher score of 1.5 compared to 2 for Company A which suggests that it is in a better position when it comes to covering short-term debt as well as having enough resources available if need be for other activities within the business such as inventory purchases or marketing campaigns.