The current and quick ratios were used to figure out BAE System's liquidity ratio.

The company's current ratio

was good, but it could do even better if it was higher. Because a higher current ratio means that the company is
better at managing its cash and credit. The quick ratio for BAE System was bad because it was lower than the
industry average. The low quick ratio also shows that the company can't turn its short-term assets into cash and
can't pay its debts because its quick ratio has gone down. So, BAE System needs to either increase its current
assets or decrease its current liabilities. It also needs to make short-term obligation payments to help lower the
amount of its current liabilities.