Homework Answers
| a) | Operating Cash Flow to Current Liabilities Ratio | ||||||
| Formula = Operating Cash Flow / Current Liabilities | |||||||
| Company | Operating Cash Flow | Average Current Liabilities | Ratio | Liquidity | |||
| 1 | 2 | 3 | 4 =2/3 | ||||
| a | 2106 | 6581 | 0.32 | Low | |||
| b | 5668 | 2181 | 2.60 | High | |||
| c | 3702 | 3365 | 1.10 | high | |||
| d | 2700 | 5192 | 0.52 | medium | |||
| b) | CAPEX Ratio | ||||||
| Company | Operating Cash Flow | CAPEX | Ratio | Solvency | |||
| 1 | 2 | 3 | 4 =2/3 | ||||
| a | 2106 | 2425 | 0.87 | Low | |||
| b | 5668 | 1007 | 5.63 | High | |||
| c | 3702 | 1220 | 3.03 | High | |||
| d | 2700 | 1984 | 1.36 | Medium | |||
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