The ratios in the table below are calculated using the information from CiMs financial statements...
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Accounting
The ratios in the table below are calculated using the information from CiMs financial statements presented in the case. Complete the last column of the table, to indicate, for each ratio, whether the trend indicates increasing or decreasing liquidity?
| Liquidity Ratios | Year 1 | Year 2 | Year 3 | Increasing or Decreasing Liquity? |
| Quick Ratio | 0.83 | 0.72 | 0.64 | |
| Current Ratio | 2.17 | 1.58 | 1.37 | |
| # Receivables Turns | 12,36 | 12.74 | 13.21 | |
| # Inventory Turns | 3.33 | 3.83 | 4.04 | |
| # Payables Turns | 10.18 | 5.41 | 4.33 | |
| DRO | 29.54 | 28.64 | 27.63 | |
| DIO | 109.61 | 95.30 | 90.39 | |
| DPO | 35.84 | 67.42 | 84.34 | |
| CCC | 103.3 | 56.5 | 33.7 |
What does increasing liquidity mean? What about decreasing liquidity?
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