Liquidity analysisIndustries QatarThe analysis shows the following results in terms of liquidity of IQ:• The horizontal analysis shows that the total current assets of IQ increased by 25% and its total current liabilities increased by 40% during the year 2005. This is largely due to increase in trade receivables, increase in inventory, increase in suppliers payable and the increase in term loans (notes 5, 6, 12 and 13 of the 2005 financial statements). The higher increase in total current liabilities than in total current assets explains why the current and stress test ratios decreased from 4.66 to 4.17 and 4.02, respectively. at 3.5. However, IQ appears to remain very liquid considering the liquidity ratio values ​​mentioned. • The current cash debt coverage ratio fell from 3.38 to 2.69. Indeed, the increase in cash flow from operating activities (26%) is lower than the increase in average total current liabilities (58%). Again, IQ nevertheless appears to remain very liquid.• Receivables turnover is based on the assumption that all sales are credit sales. The receivables turnover values ​​for 2004 and 2005 are 10.21 times and 8.83 times, respectively. This means that IQ's efficiency decreases significantly in terms of cash recovery. The decrease in receivables turnover is explained by the greater increase in average net receivables (71%) than in net credit sales (25%). • Inventory turnover decreased from 3.8 to 3.59 . This is explained by the higher increase in average inventory (37%) than the increase in cost of sales (29%) during 2005. This means that the pace of inventory sales is decreasing. The vertical analysis shows that the percentage of total current assets in relation to total assets increased from 50% to 52%. This means that IQ did not make any major investments in the company in 2005. Woqod The analysis shows the following results in terms of Woqod's liquidity: • The horizontal analysis shows that the total current assets of Woqod increased by 69% and its total current liabilities increased by 102% during the year 2005. This is largely due to increase in receivables, increase in inventories, increase in loans and the increase in debts. The higher increase in total current liabilities than in total current assets explains why the current and stress test ratios decreased from 1.82 to 1.53 and 1.74, respectively. at 1.48. The values ​​of the mentioned ratios indicate that Woqod is not very liquid and its liquidity is decreasing.