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A current position analysis is used to measure the ability of a firm to meet its current (and non-current) obligations. Three popular methods of analysis are: 1) determining working capital, 2) current ratio, and 3) quick ratio. The primary users of current position analysis are creditors. Working capital information is less meaningful than current or quick ratios. These ratios must be compared with other firms in the same industry to see if they are in line.
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