Show the quick ratio or acid test, Financial Econometrics

Assignment Help:

Q. Show the Quick ratio or acid test?

Quick ratio = Current assets less inventories/Current liabilities (times)

This ratio measures immediate solvency of a business as it removes inventories out of the  equation,  which  is  the  item  least  representing  cash,  as  it  needs  to  be  sold.  Normal is around 1: 1 however this varies within different industries.


Related Discussions:- Show the quick ratio or acid test

Intercorporate investments, Intercorporate investments: DI has a 25% ...

Intercorporate investments: DI has a 25% interest in a gold mine in the Yukon. They have held this investment for eighteen months. During this time it has not made any mon

Working capital cycle - cash cycle, Working capital cycle measures the time...

Working capital cycle measures the time between paying for goods supplied to you and final receipt of cash to you from their sale. It is desirable to keep this cycle as short as po

Inventory days, (Average inventory/Cost of sales) * 365 days Average inv...

(Average inventory/Cost of sales) * 365 days Average inventory can be arrived by taking this year's and last year's inventory values and dividing by 2 - (Opening inventories

Analyse the finance costs, The Citilink Bus Company ("Citilink") was establ...

The Citilink Bus Company ("Citilink") was established in 2000 to operate a bus service across a city with 1 million inhabitants. The bus company was created by an indigenous busin

Find out the beta of stock, Question Your portfolio has a beta of 1.18...

Question Your portfolio has a beta of 1.18. The portfolio consists of 15% U.S. Treasury bills, 30% in stock A, and 55% in stock B. Stock A has a risk-level equivalent to that o

ASSIGNMENT, I have an assignment I need help understanding how to do step b...

I have an assignment I need help understanding how to do step by step abouot predictability on excess returns

Evaluate the feasibility of project, Question 1 : Assuming that you ar...

Question 1 : Assuming that you are appointed as a consultant to assess the Tertiary education sector in Mauritius in order to do a due diligence on the potential f

Analyze the asset price channels, Problem 1: (a) Analyze the asset pri...

Problem 1: (a) Analyze the asset price channels other than the traditional interest rate channel. (b) Analyze Bank lending channel and discuss its importance for the Mau

Is the investment attractive, During and economic downturn, we can acquire ...

During and economic downturn, we can acquire another company by purchasing its stock for $6 billion. The company is earning $700 million a year, which is available for dividends, a

Entity’s working capital financing policy, An entity's working capital fina...

An entity's working capital financing policy is to finance working capital using short-termfinancing to fund all the fluctuating current assets as well as some of the permanent par

Write Your Message!

Captcha
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