Show the quick ratio or acid test, Strategic Management

Assignment Help:

Q. Show the Quick ratio or acid test?

Quick ratio or acid test  

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

This ratio measures the immediate solvency of a business as it removes the 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

How can strategies ensure organizational effectiveness, Question 1: An ...

Question 1: An organisation has to scan the external environment to identify possible opportunities and threats and the internal environment for its strengths and weaknesses be

Three ways of sustaining competitive , Three ways of sustaining competitive...

Three ways of sustaining competitive benefit are? Ans) differentiation, Price-based strategies and lock-in

Case study on fisher price, Fisher price is famous for manufacturing qualit...

Fisher price is famous for manufacturing quality toys at moderate prices. Fisher price is the best known brand for toys. It enjoys the largest market share of around 65% in the ind

Quality product, An electronics firm is presently manufacturing an item tha...

An electronics firm is presently manufacturing an item that has a variable cost of $0.50 per unit and a selling price of $1.00 per unit.  Fixed costs are$14,000 per month.  present

How might a company sustain and win a price war, ? A) By including a lower ...

? A) By including a lower cost structure ? B) By cross-subsidizing one business from another ? C) By including "deeper pockets" to fund short to medium term losses

Industry Profitability, How do the five competitive forces in Porter''s mod...

How do the five competitive forces in Porter''s model affect the profitability of the overall industry? For example, in what way might weak forces increase industry profits, and in

Describe about interest cover, Q. Describe about Interest cover? Intere...

Q. Describe about Interest cover? Interest cover =   (Profit before interest and tax (PBIT)/ Interest payable)            (no. of times) Interest cover shows the safety of e

Define managerial process of crafting & executing strategy, Define Manageri...

Define Managerial Process of Crafting & Executing Strategy the managerial ins & outs of crafting & executing company strategies. Special thought is given to management's direc

Portfolio analysis, In portfolio analysis, the business views its product l...

In portfolio analysis, the business views its product lines and business units as separate investments, each responsible for producing a positive return. These separate investments

Explain activity based management, Q. Explain Activity based management? ...

Q. Explain Activity based management? Activity based management (ABM) is about satisfying customers whilst making fewer demands on internal resources.  The aim is that once cos

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