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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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