Current Ratio = 1.5
Quick Ratio = 1.4
Current Ratio Formula = Current Assets / Current Liabilities
Quick Ratio Formula = Quick Assets / Current Liabilities
Quick Assets = Cash and Cash Equivalents + Current Receivables + Short Term Investments
1) If the current and quick ratio are favorable or unfavorable.
As both the ratios are above one it's a favorable ratio for the company as company has more assets than the liabilities.
2) Current and Quick ratio measure the company’s financial health and liquidity position in short term. It defines company’s ability to pay off debts.
3) Quick ratio is more conservative and liquid in nature, it signify short term ability to meet immediate obligations with short-term assets so it only consider highly liquid assets and exclude inventory and other current assets which might be comparatively less liquidate.
4) There are many ways to improve current and quick ratios, find it below.
Hope you like the answers.
Sen END OF SECTRON Ratio At the Alm's Game's cerca questions aments firm's current lancial situation using trend a...
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1. calculate current ratio?
2. calculate the quick ratio of this company?
3.
3.
part 3 is complete in 2 pictures ..
4. what is compro' debt ratio?
5.
6. what is amount of working capital?
7. what does the working capital of company show?
please please solve all 7 part. I really need it.
thanks
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