Which of the following would be considered liquidity or short-term solvency ratios?
quick ratio; cash ratio.
quick ratio; times interest earned ratio (TIE).
current ratio; long-term debt ratio.
current ratio; inventory turnover ratio;
Quick ratio and cash ratio would be considered liquidity or short-term solvency ratios.
These two ratio's are an indicator of a company's short term liquidity position and measures a company's ability to meet its short-term obligations with its most liquid assets.
Option 'A' is correct
Which of the following would be considered liquidity or short-term solvency ratios? quick ratio; cash ratio....
Which of the following ratios are measures of a firm's short-term liquidity? 1. Cash coverage ratio. II. Interval measure. III. Debt-equity ratio. IV. Quick ratio. V. Fixed asset turnover
Short-Term Solvency Ratios (Liquidity Rations) 1. Calculate current ratio and quick/liquid/acid test ratio from the following: A Sundry debtors RO 400,000 Stock RO 160,000 A Marketable securities RO 80,000 Cash RO 120,000 * Prepaid expenses RO 40,000 Bill payables RO 80,000 Sundry creditors RO 160,000 A Debentures RO 200,000 Outstanding Expenses RO 160,000 2 Calculate current ratio and anikliidid tact rastin from the following Short-Term Solvency Ratios (Liquidity Rations) 1. Calculate current ratio and quick/liquid/acid test ratio from the following:...
Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information for Calpine Corporation for 2004 and 2006 follows. ($ millions) 2004 2006 Cash $ 1,256.73 $ 1,523.36 Accounts receivable 1,097.16 735.30 Current assets 3,313.56 3,268.33 Current liabilities 3,285.39 6,057.95 Long-term debt 17,150.81 3,531.63 Short-term debt 1,033.96 4,568.83 Total liabilities 22,898.42 25,503.17 Interest expense 1,516.90 1,288.29 Capital expenditures 1,545.48 211.50 Equity 4,587.67 (7,152.90) Cash from operations 19.89 335.98 Earnings before interest and taxes 1,659.84 1,907.84 (a)...
Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information for Starbucks for 2018 and 2017 follows. ($ millions) Cash 2018 2017 $ 8,756.3 $2,462.3 181.5 228.6 Short-term investments Accounts receivable 693.1 870.4 Current assets 12,494.2 5,283.4 5,684.2 4,220.7 349.9 Current liabilities Short-term debt Long-term debt Total liabilities Interest expense Capital expenditures Equity Cash from operations Earnings before interest and taxes 9,090.2 3,932.6 22,980.6 8,908.6 170.3 92.5 1,976.4 1,519.4 1,175.8 5,457.0 11,937.8 4,251.8 3,883.3 4,134.7...
Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information for Calpine Corporation for 2004 and 2006 follows. ($ millions) 2004 2006 Cash $ 1,256.73 $ 1,523.36 Accounts receivable 1,097.16 735.30 Current assets 3,313.56 3,268.33 Current liabilities 3,285.39 6,057.95 Long-term debt 17,150.81 3,531.63 Short-term debt 1,033.96 4,568.83 Total liabilities 22,898.42 25,503.17 Interest expense 1,516.90 1,288.29 Capital expenditures 1,545.48 211.50 Equity 4,587.67 (7,152.90) Cash from operations 19.89 335.98 Earnings before interest and taxes 1,659.84 1,907.84 (a)...
11.Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information for Calpine Corporation for 2004 and 2006 follows. ($ millions) 2004 2006 Cash $ 1,376.73 $ 1,503.36 Accounts receivable 1,097.16 735.30 Current assets 3,563.56 3,168.33 Current liabilities 3,285.39 6,057.95 Long-term debt 16,940.81 3,351.63 Short-term debt 1,033.96 4,568.83 Total liabilities 22,628.42 25,743.17 Interest expense 1,516.90 1,288.29 Capital expenditures 1,545.48 211.50 Equity 4,587.67 (7,152.90) Cash from operations 9.89 155.98 Earnings before interest and taxes 1,589.84 1,877.84 (a)...
What is the equation to solve each below? Short term solvency, or liquidity, ratios Long-term solvency, or financial leverage, ratios Asset management, or turnover, ratios Profitability ratios Market value ratios Explain what problems financial statement analysis presents.
Do you see any problem with long-term and short-term solvency for Ralph Lauren? Short-Term Solvency Ratios Date Current Ratio Quick Ratio Mar-20 1.613 1.261 Dec-19 1.943 1.433 Sep-19 1.951 1.368 Jun-19 2.297 1.675 Mar-19 2.996 2.314 Long-Term Solvency Ratios Date Total Debt Mar-20 0.630 Dec-19 0.581 Sep-19 0.597 Jun-19 0.590 Mar-19 0.447
Which of the following ratios are correctly described as liquidity and solvency ratios? Liquidity Solvency A. Cash Current B. Current Debt to equity C. Debt to equity Financial leverage Group of answer choices Row C Row B Row A
Which of the following statements is true? Liquidity ratios measure a company's long-term ability to pay debt. Solvency ratios measure a company's ability to repay current debt. A high liquidity ratio generally indicates that a company has a greater ability to meet its current obligations. Solvency ratios measure a company's ability to survive on a short-term basis.