All of the components of the quick ratio (cash and cash equivalents, accounts receivable, and accounts payable) are converted at the same rate under both methods so the ratio is unaffected by the method. The current ratio is the same as the quick ratio except it also contains inventory which is translated at the historical rate with the temporal method and at the current rate with the current rate method. Accounts payable turnover is purchases/accounts payable. Purchases is an inventory item (like COGS) that may not use the same rate under the temporal method and the current rate method. |
