The ideal current ratio varies by industry. However, an acceptable range for the current ratio could be 1.0 to 2. Ratios in this range indicate that the company has enough current assets to cover its debts, with some wiggle room. A current ratio lower than the industry average could mean t...
services.The taxpayer shall compute the output tax for the period on the basis of t he sales value and collect the tax payable from the purchasers in addition to the pay ment on goods and services. If the sales prices of the goods and services are tax inclusive prices,the taxpayers have ...
Another well-known retailer that invests in its packaging is Net-a-Porter. Many customers are so in love with theirbeautiful boxesthat they can’t help posting their orders everywhere on social media (which, by the way, is an excellent method to increase customer loyalty and advocacy). ...
How do we use the current ratio to evaluate business performance? Explain what it means for a firm to have a current ratio equal to 0.50. Would the firm be better off if the current ratio were 1.50? What if it were 15.0? What is Ratio Analysis? Briefly explain. Compute the curren...
A “good” amount of current assets can also vary by industry and your business’s goals. After you compute current assets, you can use your findings to calculate other small business ratios, such as: Current ratio (Current Assets / Current Liabilities) Quick ratio = [(Current Assets – ...
Prices are adjusted for inflation by dividing the price index for the current period by a previous period and then multiplying that ratio by the unadjusted price. For example, the Consumer Price Index of Urban Consumers (CPI-U) was 292.7 in 2022 and 314.4 in 2024. The price of the item ...
Simply put, EV is the sum of a company's market cap and itsnet debt. To compute the EV, total debt—both short- and long-term—is added to a company's market cap, and then cash and cash equivalents are subtracted. Market capitalization is the share price multiplied by the number of...
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22% of millennials used their stimulus check to pay off credit card debt. Select takes a look at how that could improve your credit score.
Income taxes complicate DSCR calculations becauseinterest paymentsare tax deductible andprincipalrepayments are not. A more accurate way to calculate total debt service would be to compute it like this: TDS=(Interest×(1−Tax Rate))+Principalwhere:TDS=Total debt service\begin{aligned} &\text{TDS...