Calculate current ratio, Finance Basics

The average of the industry current ratio was 1.86 for 2004, 0.86 for 2005, and 0.87 for 2006. Lenovo had higher current ratio than the industry average in 2004. At that time, their liquidity was good at that time and it was a health firm. After the acquisition of IBM PC division, their liquidity for the firm turned worse than the industry. Low cash were caused by low profit became the core problem to drive down their liquidity. (See Exhibit ratios)

2168_Current Ratio.png

Posted Date: 4/1/2013 2:37:03 AM | Location : United States







Related Discussions:- Calculate current ratio, Assignment Help, Ask Question on Calculate current ratio, Get Answer, Expert's Help, Calculate current ratio Discussions

Write discussion on Calculate current ratio
Your posts are moderated
Related Questions
Management of Sole Proprietorship  In sole proprietorship the owner is usually in charge of day to day running of the business. If the business is large he may give some duties

You need cash and FAST! You jump out of your car at a location known to have one ATM, but a history of a line. Usually you can expect to wait 200 seconds from the time you arrive

Definition of 'Capital Budgeting': The process in which a business calculates whether projects such as building a new plant or investing in a long-term risk are worth pursuing

Lease Finance Leasing is a contract between one party called lessor as owner of asset and other called lessee whereas the lessee is provided the right to utilize the asset as

Partnership Definition -Partnership may be defined as a relationship between persons carrying on a business in common with a view of profits. In partnership business, two or mo


Current cost of a bond: You know that the after-tax cost of debt capital for Bubbles Champagne is 7 percent. If the firm has only one issue of five-year maturity bonds outstanding,

The Jacobs company needs to acquire a new lift truck for transporting its final product to the warehouse. One alternative is to purchase the truck for $45,000. Maintenance of th

Leverage and Coverage Ratios   (The data for interest coverage are in I-Metrix's liquidity ratios section.  The others listed in this table are in the leverage ratios section

Objectives of Business Entity The Main objectives of a business entity are clarified in detail below. Any business firm would have specific objectives that it aims at achievin