The cash asset ratio is the current value ofmarketable securitiesand cash, divided by the company's current liabilities. Also known as thecash ratio, the cash asset ratio compares the amount of highly liquid assets (such as cash and marketable securities) to the amount of short-term liabilities...
A high cash ROA ratio means the company earns more net income from $1 of assets than the average company, which is a sign of efficiency.A low cash ROA ratio means a company makes less net income per $1 of assets, which is a sign of inefficiency. The issue is that net income is no...
What is the Quick Ratio equal to? A、CA / C B、(CA – Inventory) / CL C、Cash / CL D、(TA – TE) / TA 点击查看答案 单项选择题 运动或使役时,()成为产热的主要器官。 A、骨骼肌 B、肝脏 C、肾脏 D、胸腔 点击查看答案 单项选择题...
The Price to Earnings ratio, aka P/E ratio, is a simple way to calculate the value (rather than the price) of shares on the stock market. Ultimately, the P/E ratio is a tool used for working out the best place to invest money 💰 The basic definition of the P/E ratio, or price...
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 liquidity is dependent on converting the current assets to cash in time to pay its obligations. Example of Current Ratio If a company’s current assets...
So, if the current assets amount to $400,000 and current liabilities are $200,000, the current ratio is 2:1. Current assetsare liquid assets that can be converted to cash within one year such as cash, cash equivalent,accounts receivable, short-term deposits andmarketable securities. The cur...
What is the Cash Reserve Ratio Formula? If the current CRR rate is 5%, a bank is required to store 5% of the total Net Demand and Time Liabilities or NDTL in the form of cash. The bank is not allowed to use this money for investment or lending. ...
Whether this ratio is good or bad, sufficient or insufficient, etc. depends on many factors including the composition of the company’s current assets, the speed at which the company’s sales turn into cash, the credit terms of its suppliers, the company’s long-term investments (if any),...
When performing financial ratio analysis, it is important to compare companies that are in the same industry. Ratios can vary widely among industries. For example, a retail company will have much lower profit margin than a technology company. This would result in very different profitability ratios...
When performing financial ratio analysis, it is important to compare companies that are in the same industry. Ratios can vary widely among industries. For example, a retail company will have much lower profit margin than a technology company. This would result in very different profitability ratios...