State about the quick ratio - position ratios, Financial Management

Assignment Help:

State about 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 item least representing cashitem, because it needs to be sold. Normal is around 1: 1 however this varies within different industries.

 


Related Discussions:- State about the quick ratio - position ratios

Scope of finance functions, SCOPE OF FINANCE FUNCTIONS The functions of...

SCOPE OF FINANCE FUNCTIONS The functions of Financial Manager can generally be sub-divided into two: The Routine functions and the Managerial Functions. Managerial Finance F

Can a company have a default rate on its accounts receivable, Can a company...

Can a company have a default rate on its accounts receivable that is too low?  Explain. A company could comprise a default rate on AR that would be referred too low if by liberal

Cost of holding inventories, Q. Cost of Holding Inventories? The holdin...

Q. Cost of Holding Inventories? The holding of inventories engages blocking of a firm's funds. The various risks as well as costs in holding inventories are as below: (1) Ca

Explain the mechanism that restores the balance of payments, Explain the me...

Explain the mechanism which restores the balance of payments equilibrium when it is disturbed under the gold standard. Answer:  The adjustment mechanism within the gold standar

Calculate the forward exchange rate, (a) A debt of $3600 with interest at 6...

(a) A debt of $3600 with interest at 6% compounded semiannually is to be amortized by semiannual payments of $900 each, the rst due in 6 months, together with a nal partial payme

Characteristics of a stock exchange, Characteristics of a Stock Exchange ...

Characteristics of a Stock Exchange The requirements for a stock exchange to act as a platform for buying and selling securities is dependant upon the trading prerequisites. Som

Calculate the weighted average cost, XYZ Energy Solutions plc (XYZ) has spe...

XYZ Energy Solutions plc (XYZ) has spent €12m designing and developing a new generation of domestic air source heat pumps. These new domestic heat pumps can easily be fitted to exi

Shareholders versus managers, Shareholders versus Managers A Limited Li...

Shareholders versus Managers A Limited Liability company is possessed by the shareholders though in most of the cases is managed by a board of directors selected by the shareho

Securitization, Securitization -Source of financing whereby an entity's ASS...

Securitization -Source of financing whereby an entity's ASSETS (characteristically mortgage loans, lease obligations or other kinds of RECEIVABLES) are placed in a special purpose

Illustrate the term quality of benefits, Illustrate the term quality of ben...

Illustrate the term quality of benefits It is clear from Table that total returns associated with two alternatives are identical in a normal situation but range of variati

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