Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Determine Current ratio or working capital ratio
CA = Current assets/Current liabilities (times)
Current ratio measures the short term solvency or liquidity; it demonstrates the extent to which the claims of short-term creditors are covered by assets. Current ratio is fundamentally looking at working capital of company. Effective management of working capital ensures the organisation is running efficiently. This will finally result in increased profitability and positive cash flows. Effective management of working capital includes low investment in non-productive assets such as inventory, trade receivables and current account bank balances. Also maximum use of free credit facilities like trade payables ensures efficient management of working capital.
Normal current ratios around 2:1 though this varies within different industries. Low current ratio can indicate insolvency. High ratio may indicate not maximising return on working capital. Valuation of inventories would have an effect on the current ratio, as will year end balances and seasonal fluctuations.
Discuss how a business might limit agency problem between management and creditors
What remains of an organization revenue after all expenses and taxes have been paid.
Additional information required Specification of a time scale for the evaluation. Predict cash flow details year by year for period specified in the time scale. An approxima
Determine the Limitations of trade receivable day's ratio Year-end trade receivables may not be representative of the year. Credit sales are VAT exclusive in the Incom
Define and discuss indirect world systematic risk. The indirect world systematic risk can be illustrated as the covariance among a nontradable asset and the world market portfo
Q. Security offered - influence the rate of interest ? The rate of interest charged on the loan will be lesser if the debt is secured against an asset or assets of the company
1) Future cost and historical cost: financial decision is based on the future cost and not on the historical cost. The decision related to the future and hence the cost are likely
Describe the general pattern of cash flows from a bond with a positive coupon rate. Cash flows as of a bond with a positive coupon rate consist of periodic interest payments an
Question 1 Under a hire purchase deal structured by X Finance Ltd. for Y Corporation, the finance company has offered to finance the purchase of equipment that costs Rs. 200 la
can you help me subtract checks and balances in financial algebra
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd