Ratio ned STD Fun Sub Current ratio 3.82 2,35 2,18 2,76 Quick ratio 3,82 2;35 2;18...

Ratio	ned	STD	Fun	Sub
Current ratio	3.82	2,35	2,18	2,76
Quick ratio	3,82	2;35	2;18	2,76
Absolute liquid ratio	3,54	2.08	1,89	2,43

Discuss and analyze each ratio on how Ned compares to the other organizations .

Solutions

Expert Solution

CURRENT RATIO =CURRENT ASSETS/ CURRENT LAIBILTIES

GOOD CURRENT RATIO INDICATES THAT OPTIMUM CASH IS AVAILABLE TO MEET CURRENT LIABILITIES COMING WITHIN ACCOUNTING PERIOD.

Ned has more CURRENT ratio means sufficient assets available to meet CURRENT LIABILITIES so there is no problem of working capital. having more current ratio is good

for company.

Quick ratio=CURRENT assets- inventory/ current LIABILITIES

in quick ratio inventories are not considered.

Ned has more quick ratio so sufficient cash is available to meet CURRENT LIABILITIES. it indicates there is sufficient working capital available.

Absolute liquid ratio =absolute liquid assets/current LIABILITIES

absolute liquid assets =bank+cash+marketable securities

absolute liquid ratio account RECEIVABLE are not taken into account it considers only absolute liquid assets

Ned has more absolute liquid ratio as compared to other so absolute cash available to meet CURRENT LIABILITIES is much more as compared to others. so there is sufficient working CAPITAL available.

jeff jeffy answered 1 hour ago

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