Show the quick ratio or acid test, Strategic Management

Q. Show the Quick ratio or acid test?

Quick ratio or acid test

Quick ratio = Current assets less inventories / Current liabilities (times)

This ratio measures the immediate solvency of a business as it removes the inventories out of the equation, which is the item least representing cash, as it needs to be sold. Normal is around 1: 1 however this varies within different industries.

Related Discussions:- Show the quick ratio or acid test

Research has identified general strategies for overcoming, QUESTION 1 I...

QUESTION 1 Individuals at all levels are prone to resisting change. What are the five main reasons why individuals resist change? QUESTION 2 Research has identified six

Explain different levels of strategy, J plc manufactures a range of cars. T...

J plc manufactures a range of cars. The company is structured on a divisional basis with each division having responsibility for a segment of the market. One of the divisions manuf

Sm0492 - strategy and change in the global environment, 1. Using Macro & M...

1. Using Macro & Micro frameworks analyse and evaluate the external environment of your organisation from the perspective of the external context within which it operates. Summar

Levels at which strategy operate, explain the levels at which strategy oper...

explain the levels at which strategy operate

Knowledge management techniques, Bert's Bonsai sells Bonsai plants, tools a...

Bert's Bonsai sells Bonsai plants, tools and materials to cultivate them, and literature in book and magazine form. An early adopter of electronic records, they are still happily u

Benefits of implementing an ebusiness strategy, Question: (a). What...

Question: (a). What are the benefits of implementing an eBusiness Strategy at Delta Airlines? (b). Identify the different virtual market places in the case study. (c

Heterogeneous catalysis simulator, 1. Run the Heterogeneous Catalysis simul...

1. Run the Heterogeneous Catalysis simulator for different initial conditions (initial partial pressures of species A, B, C, and D) to get the reaction rates; 2. Study the influ

Advantages and disadvantages of the formal/rational approach, RF and JT are...

RF and JT are both former international rugby players who, when they retired, formed their own business, WFH Trading Company. The company that they established at first manufactur

Diversification, refer to case scenario,is ICP''s focuse low-cost/price str...

refer to case scenario,is ICP''s focuse low-cost/price strategy opproprate for its industy?why?

How can strategies ensure organizational effectiveness, Question 1: An ...

Question 1: An organisation has to scan the external environment to identify possible opportunities and threats and the internal environment for its strengths and weaknesses be

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages