What other ratios have you seen that can be misleading

Assignment Help Accounting Basics
Reference no: EM133139307

Question - The ratios only tell part of the story, and you need to look at them. Walmart has a low current ratio, but it has a negative cash flow cycle (meaning it gets money before it pays a penny). As a result, Walmart has a very favorable current position, regardless of the current or quick ratio. At times, we act like ratios tell us more than they do, they are only indicators, and we need to dig deeper.

What other ratios have you seen that can be misleading?

Ratio Analysis - Definition, Formula, Calculate Top 32 Ratios. (2021, March 31). WallStreetMojo.

Reference no: EM133139307

Questions Cloud

What would be the amount of borrowing cost eligible : Cool Logo earned P200,000 interest from investing a portion of the loan proceeds. What would be the amount of borrowing cost eligible for capitalization
What problems may occur by robert approach : Smith Upholstery has been in business since 1970. The company started out hand upholstering the seats for luxury automakers. It built a reputation of excellence
Attracting and retaining new generations : Cango Distribution is a large, rapidly growing, multinational transportation logistics and delivery company. The company has administrative offices in Toronto a
Discuss the concept of implicit theories : Read the following case and answer the question that follow. Be sure to support your answers with course concepts which are relevant to the case and not generic
What other ratios have you seen that can be misleading : Walmart has a low current ratio, but it has a negative cash flow cycle. What other ratios have you seen that can be misleading
Social construction perspective : Discuss four distinct benefits that the social construction perspective offers OD practitioners Discuss 3 data gathering methods, including pros and cons of eac
How would you describe the design of experiment : Determine where the differences are Summarize the results with an underscore diagram and interpret the results
Crucial impact on employee attitudes : Which ideas or thoughts did you read that you found interesting or insightful? How did these ideas or thoughts inform your own thinking?
Calculate the total sales and variable rate : Based on the information above, calculate the following - Total Sales, Variable Rate, Breakeven Dollars and Breakeven rooms

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd