Evaluate the current financial situation of your company

Reference no: EM133608615

Question: A financial ratio review is when you compare two financial values to evaluate the current financial situation of your company. For example, by comparing the current assets and liabilities that your business has, you will be able to determine the working capital ratio of your company. This will indicate if your business has enough assets to cover its liabilities. The capacity of your business to pay its liabilities will indicate the financial stability of your business. A business that has positive working capital ratio, will still have assets after paying for its liabilities and consequently this indicates that they have financial stability to run its daily operations. This means that this business will have financial resources available to be re-invested in the company after the

Reference no: EM133608615

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