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Two "Activity" and two "Liquidity" ratios

List and define at least two "Activity" and two "Liquidity" ratios.

From two S&P 500 companies (must be in the same industry - i.e., GM & Ford), calculate/ compare the ratios chosen.

From calculations, what observations can be made regarding the companies operating and/or financial position?

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Ratios
List and define at least two "Activity" and two "Liquidity" ratios. From two S&P 500 companies (must be in the same industry - i.e., GM & Ford), calculate/ compare the ratios chosen. From calculations, what observations can be made regarding the companies operating and/or financial position?
Liquidity Ratios
Current ratio measures the liquidity position of the organization. It indicates the ability to pay the short term obligations of the organization. It is computed by Current Assets/Current Liabilities.
The other prominent liquidity ratio is quick ratio which measures the near term liquidity of the organization. It is computed by Quick Assets/Current Liabilities. This is related to the current ratio as it also tests the liquidity of the organization but ...

Solution Summary

Response describes two "Activity" and two "Liquidity" ratios

$2.19