单选题

An analyst gathered the following data for two companies in the same industry:

A、 is more liquid.
B、 has more financial risk.
C、 has a longer time between cash outlay and cash collection.

【正确答案】 A

【答案解析】

Company A has a higher current ratio and shorter cash conversion cycle and it therefore more liquid. The lower financial leverage ratio indicates that it has less financial risk, not more, and it has less time between cash outlay and cash collection.