Before getting to know a good liquidity ratio, let’s understand the term liquidity ratio. What is a liquidity ratio? Liquidity is the ability of a company to pay off current liabilities (Accounts Payable (AP), Accrued expenses, Short-term debt) with its current assets (Cash or equivalents,...
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...
Click-through rate or CTR is the ratio of clicks to impressions on a mobile advertising campaign. CTR is calculated by dividing the number of campaign clicks by the overall impressions.
What is the Current Ratio equal to?( ) A、Current Asset / Current Liability B、(Current Asset – Inventory) / Current Liability C、Cash / Current Liability D、(Total Asset – Total Equity) / Total Asset
What Is Considered to Be a Good PEG Ratio? In general,a good PEG ratiohas a value lower than 1.0. PEG ratios greater than 1.0 are generally considered unfavorable, suggesting a stock is overvalued. Meanwhile, PEG ratios lower than 1.0 are considered better, indicating a stock is relatively ...
The question is: what is considered to be a good P/E ratio, and how can you use it to your advantage? What is P/E Ratio? The P/E ratio is a figure that compares a company's stock price to its earnings. To calculate it, divide the stock's current market price by its earnings ...
Calculate the value of Current assets, Liquid assets and Inventories. (b) Current Assets of a Company are Rs. 3,60,000. Its Current ratio is 2.4:1 and acid test ratio is 1.3:1. Calculate the value of Current liabilities, liquid assets and inventories. (c) Working Capital of a company...
Obviously, a higher current ratio is better for the business. A good current ratio is between 1.2 to 2, which means that the business has 2 times more current assets than liabilities to covers its debts. A current ratio below 1 means that the company doesn’t have enough liquid assets to...
An increasingly higher ratio above two isn't necessarily better. A substantially higher ratio can indicate that a company isn't doing a good job of employing its assets to generate the maximum possible revenue. A disproportionately high working capital ratio is reflected in an ...
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...