A cash ratio above 1.0 means the company has more cash than it needs to meet its obligations. It could pay off all debts due for the year, and still have some cash left over. A ratio below 1.0 means that its short-term debts outsize the cash on hand, which could point to potential...
What Does Cash Sweep Mean? A cash sweep is the use of a company's excess cash to pay outstanding debts ahead of the scheduled payment date instead of giving it to their investors or shareholders. This process helps a company to minimize risk and liability as well as pay its debt at a...
Loan-to-value ratio Lenders also use your loan-to-value ratio (LTV) to evaluate your eligibility for a cash-out refinance. Your LTV is the comparison of your mortgage amount to the value of your home. Some lenders won’t allow homeowners to exceed an 80% LTV to secure a cash-out refi...
Your credit limit not only determines the maximum amount you can borrow but also has a direct impact on your credit utilization ratio. This ratio is a calculation of the amount of available credit you are currently using, expressed as a percentage. For example, if you have a credit limit of...
Open an account today and get a cash bonus up to $1,000*. Plus, access to 150 markets across 34 countries and the Zacks Rank Trading Tool. Open An Account View Disclosure Calculation of an Expense Ratio Most fund managers quickly point out the expense ratio so you don't have to calcu...
What is the free cash flow ratio formula in accounting? What is "cash dividends declared" in accounting? What are monthly payables in accounting? What is single-entry bookkeeping? How do you determine a true cash balance in accounting?
In accounting, how do you find incremental cash flow? What does a statement of cash flows tell us in accounting? Define free cash flow What is a good cash flow to debt ratio? How to calculate operating cash flow What component within the accounting equation would 'Cash" fall under?
What does cash flow explain? Cash flow explains how well a company manages its cash position, indicating the ability to generate cash to fund operations, pay debts, and invest in growth. It provides insight into the company’s operational efficiency and financial health. Does cash flow mean pro...
When you make banking transactions, you might have come across the term ‘Cash Reserve Ratio' or CRR many times. Have you wondered what it means? Cash Reserve Ratio is also known as CRR, is decided per their country. In India, the Reserve Bank of India, also known as RBI, decides the...
Cash flow ratio = operating cash flow / current liabilities A high cash flow ratio generally indicates your business has enough operating cash flow to cover current liabilities—this is a sign of financial stability. A low ratio, on the other hand, could demonstrate potential struggle to meet yo...