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.
Q. Changes in exchange rates? The law of one price proposed that identical goods selling in different countries should sell at the same price and that exchange rates relate the
The payment that the issuer makes to the bondholder can be in any currency. The contract at the time of bond issue between the issuer and the investor can specify
Advantages and Disadvantages of Investing in Gilts Advantages As the security is issued by the GOI, it has a minimal default risk. Investors have the opportunity to inves
Push Strategy This is referred for marketing approach in which a manufacturer uses its sales force and trade promotions to sell a product actively to retailers and wholesa
uses and limitations of the marginal weighting system
Accounts receivable are sometimes not collected. Why do companies extend trade credit when they could insist on cash for all sales? Extending trade credit almost all the time le
What is the Floating Rate Bonds (FRBs) Bonds whose interest payments fluctuate with changes in general level of interest rates and are tied to a basic rate (termed as the refer
The volatility assumption has a great influence on the arbitrage free value of the bond. The higher the expected volatility, the greater the value of an option. W
SAM Technology had AED 640,000,000 of retained earnings on December 31, 2012. The company paid common dividends of AED 30,000,000 in 2012 and had retained earnings of AED 500,000
State the term- Pass Through Certificates (PTCs) Pass through Certificates (PTCs) are debt securities which pass through income from debtors through intermediaries to investors
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: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd