Question

You
calculate the company’s Current Ratio and find it to be 3.5. What
specifically does this tell you?

Answer #1

The current ratio of 3.5 tells us that even though the company is not in any financial debt or crisis right now. It still does not indicate that the company is actually doing well. What it actually shows is that potentially, the company is not able to utilize its resources properly. There is ineffective utilization and could a factor due to not being able to secure enough financial payments or loans. It could also potentially mean that the company is not utilizing its working capital well enough. But, is currently in no danger of not being able to pay off its dues or obligations.

(I will be happy to assist you with any further questions that you might have. If you feel that the answer has helped you, please help me by giving a positive feedback)

Question #6 Your new Chief Financial Officer is concerned about
the Company’s Current Ratio. She asks you to do a detailed
analysis. Required: How would you complete this assignment?
Specifically,
a) How would you calculate the ratio?
b) What would you compare the ratio to?
c) What SPECIFIC accounts would you research?

in your own words, what does each measure that current ratio,
debt to equity ratio and Return on equity ratio would tell us about
your company that is important to investors and creditors?

Calculate delta airline's times-interest-earned ratio for the
year end. What does this tell you about delta airlines? (reference
required to support the answer)

Calculate Delta Airlines times-interest-earned ratio for the
year end for 2016 and What does this tell you about the
company?

1) Company's Current ratio
2017 Current ratio = 2.055
2016 Current ratio = 2.077
Explain what information this ratio provides (define), and what
the results mean specifically to your
company. Use complete sentences in your own words.
Has the current ratio improved?_________________________
2) Company's Debt ratio
2017 Debt Ratio =0.417987 = 41.799%
2016 Debit Ratio = 0.415240 = 41.524%
Explain what information this ratio provides (define), and what
the results mean specifically to your
company Use complete sentences
Has the...

4. How can an increase in a company’s days sales uncollected
affect the current ratio?
5. Why is the debt to assets ratio so important?
6. Suppose that a company’s current ratio was 2.5 last year and
decreased to 2.0 this year. Last year’s quick ratio was 1.0 and
stayed constant this year. What does this trend suggest?

what does acid test ratio use to
calculate the ratio

The following information is available for ABC
Company:
Current
Ratio
3.5
Acid test
ratio
3.0
Inventory turnover 8.0
Year-end current liabilities $600,000
Beginning
inventory
$500,000
How much is the cost of sales during the year?
a. $3,200,000
b. $6,400,000
c. $2,400,000
d. $1,600,000

What is cyberwar to you? When does it begin or end? Specifically
where does it begin and end in the area of cyber terrorism and
cyber deterrence?

Current ratios among public corporations
Can you find the current ratio of a public company as well as
the industry average? Indicate whether the company's ratio is
strong or weak compared to the industry average. If you can also
find an explanation of why the company has a better-than-average or
worse-than-average ratio, that would be great, too.

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