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 .

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 month ago

Ratios ned STD Fun Sub Equity ratio of debt 0,61 0,57 0,53 0,43 Proprietary ratio 11,4...

Ratios ned STD Fun Sub Equity ratio of debt 0,61 0,57 0,53 0,43 Proprietary ratio 11,4 10,58 11,23 12,83 Ratio of capital gearing 10,44 9,58 10,23 11,83 Discuss and analyze each ratios and compare Ned to its competitors

What assets are not in the Quick Ratio that are in the Current Ratio? What makes...

What assets are not in the Quick Ratio that are in the Current Ratio? What makes these assets different? Please explain

It is important to review not just the Current Ratio, but also the Quick Ratio and...

It is important to review not just the Current Ratio, but also the Quick Ratio and Cash Ratio because: the Cash Ratio must always provide a greater statistic than the Current Ratio and Quick Ratio. the Quick Ratio includes inventory that can be easily liquidated for cash. a low Current Ratio may not necessarily indicate a problem with a company. companies can operate with a Cash Ratio close to zero and maintain liquidity. GAAP requires it.

1) The Quick and Current Ratio are used to estimate

1) The Quick and Current Ratio are used to estimate A. long term financial risk. B. long term operational risk. C. short term financial risk. D. short term operational risk. 2) When analyzing the Debt Ratio the most logical other financial ratio to analyze is the A. Current Ratio. B. Times Interest Earned. C. ROE. D. ROA. 3) The difference between the ROE and ROA tells us A. nothing. B. how much equity is invested in the firm. C....

Quick Ratio (QR) = Liquid Assets/Current Liabilities. Why is it more important to manage quick ratio,...

Quick Ratio (QR) = Liquid Assets/Current Liabilities. Why is it more important to manage quick ratio, in a time of recession, for the survival of a company?

Virtual’s current ratio is1.33 and its quick ratio is 0.75 , whereas Gaia’s current ratio is1.66...

Virtual’s current ratio is1.33 and its quick ratio is 0.75 , whereas Gaia’s current ratio is1.66 , and its quick ratio is0.93 . Which of the following statements are true? Check all that apply. Gaia Group has a better ability to meet its short-term liabilities than Virtual Industriesnc. A current ratio of 1 indicates that the book value of the company’s current assets is equal to the book value of its current liabilities. If a company has a quick ratio...

A firm has a current ratio of 1.8 and a quick ratio of 0.6. This indicates that:

1. A firm has a current ratio of 1.8 and a quick ratio of 0.6. This indicates that:A. the firm has more current liabilities than it does current assets.B. the firm buys inventory on credit.C. cash is the largest component of current assets.D. inventory represents more than 50 percent of the firm's current assets.2. Which one of the following will increase the net working capital of a firm?A. paying a supplier for a recent purchaseB.obtaining a 3-year loan to buy...

Question

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

Solutions

Expert Solution

Related Solutions