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.
QUESTION (a) A financial fraud has happened in BABA Bank. Your services have been retained as forensic examiner to investigate the above case While investigating you receive
the approach focussed mainly on the financial problems of a corporate enterprise
The price of a non-dividend paying share, St, follows a geometric Brownian motion process. The current price of the share is £10 and volatility of the share price process is 12% pe
Capitalization ratios are used for determining the extent to which the corporation is trading on its equity, and the resulting financial leverage. These ratios
The director of capital budgeting for a firm has recognized two mutually exclusive projects, A and B, with the following expected net cash flows:
Characteristics of Warrants As mentioned earlier, a warrant is a variant of a call option and gives the holder a certain right to purchase shares of the company at a predetermi
evaluate the importance of leverage in financial management of a small scale company
Statement of Cash Flows A formal statement of the cash received and disbursed through an organization. The statement of cash flows is separate into three sections that are inve
How to use integrated promotional mix to achieve marketing objectives
T-Bills are issued to enable the government to tide over short-term liquidity requirements with maturities varying from a fortnight to a year. These instruments a
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