Cash flow liquidity ratios, Accounting Basics

Liquidity refers to a company's cash position, availability of resources to meet short-term cash requirements, and overall ability to obtain cash in the normal course of business. A company is said to be liquid if it has sufficient cash or is capable of converting its other assets to cash in a relatively short period of time so that presently maturing debts can be paid.

 Required:

1. Measure  the current, quick, and cash flow liquidity ratios, along with the working capital ratio for your company for the last 3 years.

2. What information does your calculation give an investor or creditor? What are the ratio trends?

3. Repeat requirement 1-2 for your competitor and compare the ratios.

 

Posted Date: 3/19/2013 6:57:24 AM | Location : United States







Related Discussions:- Cash flow liquidity ratios, Assignment Help, Ask Question on Cash flow liquidity ratios, Get Answer, Expert's Help, Cash flow liquidity ratios Discussions

Write discussion on Cash flow liquidity ratios
Your posts are moderated
Related Questions
Q. What is Working capital? Working capital -- current assets minus current liabilities. In most businesses majorcomponents of working capital are cash, accounts receivable and

Q. Explain about Long-term investments? A long-term investment habitually consists of securities of another company held with the intention of (a) obtaining control of another

1. An accountant records a transaction when cash is paid or received under which basis of accounting?  cash  deferred  accrual  liability  2. When unearned revenue is initially rec

Accounting information systems' output is required by external and internal users for decision making. you are required to use the following trial balance to prepare financial stat

briefly explain the accounting concepts which guide the accountant at the recording stage

Q. Explain Accounting entity concept? Business entity concept (or accounting entity concept). Data assemble in an accounting system relates to a specific business unit or entit

Bank for International Settlements (BIS) A consortium bank recognized to coordinate the collection and rescheduling of German reparations after World War I, the BIS has surviv

Jane has a $35,000 bank loan that she wishes to pay off in five equal annual payments with 12% interest. If the first payment is due one year from today, what will be the amount

1. My accountant has told me that my business made a profit of £100,000 last year. However over the same time period my bank balance has decreased and not increased as I expected.

A bank statement showed an overdraft of $750. A cheque issued in payment of rent for $570 had not been presented, and a cheque for $624 received was omitted from the statement. The