Notes: The inverse price/earnings ratio is a gauge of the earnings yield of holding stocks, shown here in comparison to risk-free rates. In panel a), excess liquidity is calculated as banks’ current account and deposit facility holdings minus their minimum reserve requirements. In panel b), ...
B) Balance sheet accounts are listed in order of decreasing liquidity. C) Liquid assets tend to be highly profitable. D) The less liquidity a firm has, the lower the probability the firm will encounter financial difficulties. E) Trademarks and patents are highly liquid. 8) Liquidity is ...
Based on previous studies, a higher the liquidity ratio is correlated with fewer innovation opportunities, and vice versa [47]. However, Pham, Van, Le and Le [48] found a positive relationship between liquidity ratio issue size and innovation. Nevertheless, a small number of applications are ...
Since the functional currency is the reporting currency, the temporal method must be used. Since it is taking fewer dollars to buy a peso, the peso is depreciating.The quick ratio is a liquidity ratio that does not include inventory. The quick ratio is calculated as [(cash + accounts rece...
The times interest earned ratio is an indicator of a corporation’s ability to meet the interest payments on its debt. The times interest earned ratio is calculated as follows: the corporation’s income before interest expense and income tax expense divided by its interest expense. The larger th...
C. Interest coverage ratio is calculated as operating cash flow divided by interest payments. 解析:选B。偿债比率 = 经营现金流量/为偿还长期债务而支付的现金,衡量用经营现金流量偿还债务的能力。A项,再投资比率 = CFO/为长期资产支付的现金,其中应该是CFO而不是CFI。C项,利息覆盖率 = (CFO +已支付利息...
Liquidity ratio Liquidity ratios evaluate the current solvency of an organization’s financial position. These ratios are calculated to find out whether an organization has the ability to meet its current obligations. Two common liquidity ratios are thecurrent ratioand thequick ratio. ...
The ROA was used as an alternate for financial performance and the liquidity was calculated using the current ratio, quick ratio and the cash ratio. Control variables used were Firm size, sales growth and firms' leverage. Findings established a significant positive relationship between liquidity and...
The quick ratio (also known as the acid test ratio) is the ratio of the quick assets to: a. Sales b. Cash c. Average receivables d. Current liabilities Liquidity: Liquidity is the quality of an asset to convert ...
The cash ratio, a more conservative measure of liquidity than the quick ratio, is calculated as follows: Cash ratio = (Cash + Marketable securities) ¡Â Current liabilities = ($200,000 + $100,000) ¡Â $600,000 = 0.5Answer (B) is incorrect because Improperly including only ...