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!
Q. Explain about Position ratio - working capital ratio?
1 Current ratio (CA) or working capital ratio
CA = Current assets / Current liabilities (times)
The current ratio measures the short term solvency or liquidity; it shows the extent to which the claims of short-term creditors are covered by assets. Current ratio is essentially looking at the working capital of the company. Effective management of working capital makes sure the organisation is running efficiently. This will ultimately result in increased profitability and positive cash flows. Effective management of working capital includes low investment in non-productive assets like trade receivables, inventory and current account bank balances. Additionally maximum use of free credit facilities like trade payables ensures efficient management of working capital.
Normal current ratio is around 2:1 though this varies within different industries. Low current ratio can indicate insolvency. High ratio can indicate not maximising return on working capital. Valuation of inventories would have an impact on the current ratio, as will year end balances and seasonal fluctuations.
Strategy formulation presupposes a set of goals and objectives. Why aren’t goals and objectives obvious? What characteristics of people and organizations can make setting goals and
Question 1: a) What is Strategic Management? b) What are the three stages of Strategic Management? c) Why strategy implementation often is considered the most difficult
Whether, a strategy addresses the circumstances in which an company is operating
A philosophy that believes traditional or conventional budgeting methods are of little use to management, however beyond budgeting does not believe that budgeting within organisati
Identify suitable performance measures for an insurance company to detect false claims and measure the speed of how they are processing claims? Identify suitable non-financial p
Select an existing business that has recently launched a new product. You may also use your own company. Consider how the organization's marketing strategy has benefited the new pr
Consider a community dining style restaurant such as Benihana of Tokyo. Assumptions are as follows: When you admit a customer to the bar, the customer is assured a seat in th
Fixing the Knowledge Gap: Planning Now commence the 'Fixing knowledge gap' phase by identifying the broad nature of the solution required, as follows: a) Wherever you h
How would you respond to Coca-Cola’s change in sales policy? How would you ensure Pepsi’s board that this response will allow you to remain competitive and profitable?
Protecting and strengthening the organization's position in its present markets by its current products
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