Learn what is cash ratio and calculate it using the cash ratio formula to assess company’s ability to pay short-term debts with cash and cash equivalents.
Learn why so many finance conversations involve the phrase "cash is king." Explore the ways this philosophy can play into a strong investing portfolio.
The payout ratio indicates the percentage of a corporation’s earnings which are distributed as cash dividends to its stockholders. Typically, the payout ratio is computed by using the per share common stock amounts. For example, if a corporation’s cash dividend per share of common stock for...
Showing that the amounts reported agree with the change in the company’s amount of cash and cash equivalents during the accounting period. Related Questions What is the free cash flow ratio? What is the difference between cash flow and free cash flow? What is the difference between the ...
What is the Cash Reserve Ratio Formula? The Formula for the Reserve Ratio What are the Objectives of the Cash Reserve Ratio? SLR Vs. CRR How can the Cash Reserve Ratio help? Advantages of Cash Reserve Ratio (CRR) Key Takeaways Related Articles When you make banking transactions, you might...
The times interest earned ratio measures how easily a business can meet its financial obligations. Learn how it works and how to calculate it
Discover what the quick ratio reveals about short-term liquidity and why it's crucial for evaluating a business's immediate financial health.
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...
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 refinance. Minimum home...
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...