Liquidity Ratios:Liquidity ratios assess a company’s ability to meet its short-term financial obligations. Common liquidity ratios include the current ratio (current assets divided by current liabilities) and the quick ratio (current assets minus inventory divided by current liabilities). These ratios ...
After hitting deductible, medical costs will be split between you and the insurance provider. Copayments or copay is one of the ways to do this. Copayments have a flat rate depending on the specific service or prescription. For example, the flat rate for a check-up would be different from...
Analyzing financial statements is very important for managers, creditors, and investors to do. To assist in this process, there are some ratios that people look at in determining the health of the company. Many of these ratios depend on the information fo Which of ...
Business Financial ratios What does it mean if the debt-to-equity ratio is higher than the previous year? Explain.Question:What does it mean if the debt-to-equity ratio is higher than the previous year? Explain.Debt:The term "debt" refers to the amount of mon...
2 Unlike mutual funds, ETFs trade on exchanges just like stocks, and their price changes throughout the day, providing liquidity and flexibility. How do ETFs work? ETFs have become popular with investors in large part because they can provide a way to buy a potentially diversified investment. ...
transactions per second, Ethereum compares poorly with alternatives like Tron (2,000 TPS), Avalanche (4,500 TPS), and Solana (up to 65,000 TPS). Layer 2 networks like Arbitrum help users transact faster but may not offer the same levels of liquidity and the same dApps found on Ethereum...
What are at least three examples of specific ratios and how is each ratio used by an investor in his or her decision-making process? For example, accounts receivables turnover is a specific liquidity ratio. What are at least three examples of specifi...
Suppose that Company XYZ has current assets of $8 million and current liabilities of $4 million. The working capital ratio is 2 ($8 million / $4 million = 2). That’s an indication of healthy short-term liquidity. But, what if two similar companies each had ratios of 2? The firm wi...
Once you understand how to read an option chain, the next step is using this information to your advantage. When assessing your choices in an options chain, you'll need to do the following: Evaluate Liquidity Look for options with tight bid-ask spreads and high volume. These tend to be ...
Examples like Jo's (above) reveal some limitations of using ROI, particularly when comparing investments. While the ROI of Jo's second investment was twice that of the first investment, the time between Jo’s purchase and the sale was one year for the first investment but three years for t...