A Firm's Current Ratio Has Steadily Increased Over the Past

Multiple Choice

A firm's current ratio has steadily increased over the past 5 years, from 1.9 to 3.8. What would a financial analyst probably conclude from this information?

A) The firm's fixed assets turnover has improved.
B) The firm's liquidity position has improved.
C) The firm's stock price has increased.
D) The firm's financial leverage has improved.
E) The firm's market value has decreased.