Current ratio= Current assets 205 ___ x ___= 2.56 Current liabilities 80 多做几道 Which of the following is a ratio which is used to measure how much a business owes in relation to its size? A Asset turnover B Profit margin C
For example, a company’s current ratio may appear to be good, when in fact it has fallen over time, indicating a deteriorating financial condition. But a too-high current ratio may indicate that a company is not investing effectively, leaving too much unused cash on its balance sheet. The...
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...
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...
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,...
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 ...
B、(Current Asset – Inventory) / Current Liability C、Cash / Current Liability D、(Total Asset – Total Equity) / Total Asset 点击查看答案 你可能感兴趣的试题 单项选择题 关于脊髓灰质炎病毒的特性描述正确的是 ( ) A.以隐性感染多见,约占90%以上 ...
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...
A "good" expense ratio will be determined by a variety of factors, such as if the fund is actively managed or passively managed. Generally, for an actively managed fund, good expense ratios range between 0.5% and 0.75%. Anything above 1.5% is considered high. What Has the Lowest Expense ...
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 ...