In this case study we want to calculate the liquidity ratios for the four companies across the top, starting with Coca-Cola. So let's go for their OWC, that's already been calculated.

We can see it in row 49. I now need to divide that by sales, which is right up at the top. Revenues, there we are. Now the current ratio, that's going to be in their balance sheets, where I take their current assets and divide it by their current liabilities.

The cash ratio, very similar. I want to take cash and divide it by current liabilities. I'm going to use cash and financial assets, divided by current liabilities. We'll just scroll up, we can find their current liabilities totaled near the top, the balance sheet information. Next up is receivables days. So I need to go find their receivables figures, again, go towards that balance sheet information, we've got accounts receivable. I'll divide that by their sales up near the top and multiply it by 365. Inventory days, quite similar again, into the balance sheet information, find inventory, but I'm going to divide it by COGS. I'm gonna change that COGS from a negative to a positive and then again, times it by 365. And lastly, for hour payables, up into our balance sheet information, accounts payable divided by COGS, change it from negative to positive, times by 365. I copy it to the right and then copy it into our three other companies and let's do some analysis. Well, Coca-Cola sales went down between years 19 and 20. Now, as your sales go down, you would hope your OWC goes down as well. Less sales means less inventory, for instance. That would mean that you'd have a flat 5.9% negative in both years. But we can see that Coca-Cola have actually managed to reduce their OWC faster than their revenues or sales. They want to be holding less inventory, less accounts receivable, relative to their sales and that's great for their cash management. In terms of the current ratio, they're more able to pay their bills. This is Coca-Cola after all, a mega company, they shouldn't have any problems paying their bills. And similar for the cash ratio, we see an improvement there. In terms of their days, receivables days has come down, so they're chasing their customers that little bit quicker. Inventory days has gone up slightly. Oh dear, they're holding their inventory that little bit longer. However, this was a year when their sales suddenly dropped. That probably meant their inventory had to be elongated slightly. And their payables days has increased. They're taken a little bit longer to pay their suppliers. Now, don't be too shocked by that 275. They're probably not paying their suppliers after 275 days. What we should be using for payables days is payables divided by the purchases. However, we don't have access to the figures like purchases, so we use COGS instead and rather than looking at that number as an absolute figure, instead we use it to compare across the years and they're taking longer to pay their bills. Now compare that to the other companies, Keurig Dr. Pepper has managed to get their OWC to sales to come down as well, so really good in a year when your sales are decreasing. They're taking longer to pay their customers, they're holding their inventory for longer, receivables days down. That seems to be very similar between Coca-Cola and Keurig Dr. Pepper. Now National Beverage have a different strategy. Their OWC to sales is positive and even though their sales went up, their OWC to sales came down. So that's again, fantastic cash management we're seeing across these companies. Receivables days up ever so slightly, inventory days coming down, so really, really good there. And their payables days, again increasing, so that's really good for their cash management. Monster, we see their days going in the same directions as (indistinct) payables days slightly decreasing there, so they're paying their suppliers in a slightly shorter period. Current ratio and cash ratio, both improving and their OWC to sales again coming down. So we're seeing very similar things happening across the industry between year 19 and 20.