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Changes in Ratio Analysis

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Over the past year, M.D. Ryngaert & Co. has realized an increase in its current ratio and a drop in its total assets turnover ratio. However, the company's sales, quick ratio, and fixed assets turnover ratio have remained constant. What explains these changes?

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Solution Summary

The solution discusses the current ratio, total asset turnover and quick ratio in 69 words.

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Current Ratio = Current Assets / Current Liabilities
Total Asset Turnover = Sales/Total Assets
Quick Ratio = (Current Assets - ...

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