... follows: Liquidity: The current and quick ratios have improved over the years and are higher than the industry average. In comparison between the current ratio and quick ratio it indicates that almost 50% of the company's current assets value in 2003 is made up of inventory. Nevertheless, the quick ratio for 2003 suggest that the company has no short term liquidity problems and should have no difficulty in paying its debts as they become due. Activity: The inventory turnover pace is constant for the last 3 years (2001 to 2003) but much slower against the industry average. The slower turnover suggests that the company may be holding large inventory. There are some dangers that the inventory could contain certain obsolete items that may require writing off. As for the average collection period, there was no improvement instead it has increased further from 50 days in 2001 to 57 days in 2003 and it ...

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