Current Ratio Definition The current ratio is balance-sheet financial performance measure of company liquidity. The current ratio indicates a company's ability to meet short-term debt obligations. The current ratio...
The ratio of current assets to current liabilities. This ratio is an indicator of a company’s ability to meet its current obligations. To learn more, seeExplanation of Financial Ratios. Related Q&A What is the current ratio? What is the difference between the current ratio and the acid test...
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for control purposes and use the various instruments noted above to reduce the level of bank deposits, this may not be sufficient in itself to reduce spending. Spenders may simply switch to ‘M4’ type money, running down their building society deposits to finance current purchases. The central...
debt, to the current share price. The inverse of the price/earnings ratio. It's the Total Twelve Months earnings divided by number of outstanding shares, divided by the recent price, multiplied by 100. The end result is shown in percentage. ...
liabilities with its short-term, or current, assets. This is aliquidity ratio, meaning that it measures the ability of the company to pay off some portion of its debts with some portion of its assets; in this case, it is looking at the ability to payshort-term debtswith current assets....
liabilities. The higher the ratio, the more liquid the company. Current yield For bonds or notes, the coupon rate divided by the market price of the bond. Current-coupon issues Related: Benchmark issues Exchange of assets Acquisition of anothercompany by purchase of itsassetsin exchange for cas...
Understanding Other Current Assets (OCA) in Finance When it comes to managing finances, there are numerous terms and concepts that can be overwhelming. One such term is “Other Current Assets” (OCA). In this blog post, we will break down the OCA definition and provide examples of its use...
delta, its price will change by $0.30 if the underlying moves by $1.00. If you want tohedge this directional riskyou could sell 30 shares (each equity options contract is worth 100 shares) to becomedelta neutral. Because of this, delta can also be thought of as thehedge ratioof an ...
Obligations are an important aspect of personal finance. Every budget should first include all financial obligations for which the individual is responsible over the given time period. TheFinancial Obligation Ratio(FOR), a quarterly figure released by theFederal Reserve Boardthat estimates the ratio of...