Nice Current Ratio Financial Analysis
Current ratio is equal to total current assets divided by total current liabilities.
Current ratio financial analysis. A financial ratio is a comparison between one bit of financial information and another. In other words if the current ratio is higher than 1 then the company is believed to be in a better shape. A high ratio implies that the company has a thick liquidity cushion.
The current ratio is one of the most commonly used measures of the liquidity of an organization. Arbees 123 130 1. The current ratio is a vital liquidity ratio which measures the liquidity position of a company.
The current ratio is a very common financial ratio to measure liquidity. There is a minimum of 21 different ratios that. The working capital ratio is considered one of the most useful ratios in financial or accounting analysis as it helps to measure the liquidity position of the business in a market.
Ratio analysis is a useful management tool that will improve your understanding of financial results and trends over time and. Julies 056 038 0. The results of this analysis can then be used to grant credit or loans or to decide whether to invest in a business.
Financial Ratios can assist in determining the health of a business. The current ratio is a liquidity ratio that measures a companys ability to pay short-term obligations or those due within one year. Julies 039 030 0.
Quick Ratio Maquis 136 092 0. This ratio is a comparison between assets that can be readily turned into cash -- current assets. It indicates a companys potential to convert its assets into cash to manage and pay off its short-term liabilities.