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Increased Current Ratio and Drop in Total Assets Turnover Ratio

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You are a financial analyst for a pharmaceutical company and the CFO has asked you to look into the following situation. Over the past year, the company has realized an increase in its current ratio and a drop in its total assets turnover ratio. Sales have remained constant as have the quick ratio and the fixed assets turnover ratio. What could possibly explain this situation? Elaborate!

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An increase in the company's current ratio with a constant quick ratio shows that the company has increased the amount of inventory ...

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This solution explains the situation provided regarding increased current ratio and drop in total assets turnover ratio.

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