A current ratio that is in line with the industry average or slightly higher is generally considered acceptable. A current ratio that is lower than the industry average may indicate a higher risk ofdistressordefaultby the company. If a company has a very high current ratio compared with its pe...
The quick ratio, also known as the acid-test ratio, is a comparison of a company's easily liquidated assets to short-term liabilities. The liquidated assets include accounts receivable, cash, and short-term investments, excluding prepaid expenses and inventory The cash asset ratioor cash ratio i...
To give an example: a current ratio equal to 3 means that the company has 3 times more current assets than current liabilities. Very often, people think that the higher the current ratio, the better. This is based on the simple reasoning that a higher current ratio means the company is ...
However, an investor should also take note of a company's operating cash flow in order to get a better sense of its liquidity. A low current ratio can often be supported by a strong operating cash flow. If the current ratio is too high (much more than 2), then the company may not...
:The better your credit score, the better interest rate you’ll get. The same goes for the size of your down payment and the amount of debt you carry: Generally, if you have more money to put down, you’ll get a lower rate. If you have additional debt, your rate might be higher....
There’s no right or wrong answer. It’s important to consider these two key questions: Can you afford the higher monthly mortgage payments?Many borrowers stretch as it is to fit a 30-year mortgage payment into their monthly budget. If that’s the case for you, it might be better to ...
For instance, if you plan to apply for credit soon, make a payment before the issuer reports your balance. This way, the reported balance is lower (or zero). A lower credit utilization ratio not only looks better to a lender, but it also can boost your credit score. ...
To be a good candidate for an FHA loan, you’ll generally need a credit score of 580 or higher, no history of bankruptcy in the past two years or foreclosure in the past three years, a debt-to-income ratio less than 43%, steady income and proof of employment, and purchasing a home...
CASA Ratio = CASA Deposits ÷ Total Deposits What's the Difference Between a CASA Account and a Savings Account? A portion of a CASA account is a savings account, and the customer receives interest on the deposit. The interest will be slightly lower than it might be for a regular savings...
Parent–child bonding has been reported to promote children’s cognitive neurodevelopment [2,4] and enables the parent–child bonding to mature into a better parent–child relationship when it is stronger [5]. Additionally, it is an essential component of a child’s development and social well-...