This topic contains 0 replies, has 1 voice, and was last updated by Ridzky 2 weeks, 5 days ago.
- September 27, 2018 at 9:40 pm #251421
Hi, nice article.
I would like to ask you a question regarding your statement that saying by reducing the number of days to collect receivables will increase the quick ratio. receivable is a part of quick asset, hence the higher the receivable the higher the amount of the quick ratio. frankly I still wasn’t sure about my opinion either, but considering you say that quick ratio is not a great measure of liquidity because the account receivable cannot be collected any time, I can conclude that the quick ratio will keep to increase regardless how much uncollected account receivable you has. isn’t that right? I’ve been contemplating this issues for days now, since lot of sources give different opinion. cheers XD