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What this ratio "Current Liabilities to Inventory" describes?

Accounting Financial Reporting Financial Analysis Financial Management Finance
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Question added by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies
Date Posted: 2015/04/25
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Haytham Al-Khamis
by Haytham Al-Khamis , Deputy General Manager , Al Darwish Engineering

It depends on the type of company but usually this ratio reveals the reliability of the company on available inventory for the repayment of debts of creditors.

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