or its ability to generate enough cash to pay off all debts should they become due at once. Although they’re both measures of a company’s financial health, they’re slightly different. The quick ratio is considered more conservative than the current ratio because its calculation factors...
百度试题 结果1 题目 What is the current ratio of the company? A1.75 B2.56 C2.88 D3.20 相关知识点: 试题来源: 解析 答案解析: Current ratio= Current assets 205 ___ x ___=2.56 Current liabilities 80 反馈 收藏
Determining a Good Working Capital Ratio The working capital ratio is calculated by dividingcurrent assetsbycurrent liabilities. It is also referred to as thecurrent ratio.1 A working capital ratio of less than one is generally taken as indicative of potential future liquidity pr...
Quick ratio = (Total Current Assets – Inventory – Prepaid Expenses) / Current Liabilities One of the things to look out for when measuring the quick ratio is its margin with the current ratio. If the margin is wide, the business relies too much on inventory. Many consider the quick ratio...
The current ratio is a financial metric used to evaluate a company's liquidity and short-term solvency by comparing its current assets to its current liabilities.
The current ratio shows a company’s ability to meet its short-term obligations. The ratio is calculated by dividing current assets by current liabilities. An asset is considered current if it can be converted into cash within a year or less, while current liabilities are obligations expected to...
The company has a current ratio of 2.0, which would be considered a good ratio value in most industries. While the value of acceptable current ratios varies from industry, a good ratio would often be between 1.5 and 2. Why the current ratio is important A company’s current ratio provides...
百度试题 结果1 题目What is the current ratio for Year 2018?ABCDA 相关知识点: 试题来源: 解析 A 反馈 收藏
A current ratio that is above the industry average or in line with it is generally considered healthy. A current ratio below the industry average may indicate an increased risk of financial suffering or default. If a company's current ratio is very high
Definition of Current Ratio The current ratio is a financial ratio that shows the proportion of a company’s current assets to its current liabilities. The current ratio is often classified as a liquidity ratio and a larger current ratio is better than a smaller one. However, a company’s ...