Question

In: Accounting

what is the another common term for the current ratio?

what is the another common term for the current ratio?

Solutions

Expert Solution

Answer:

Current ratio measures the capability of a business to meet its short-term obligations that are due withing a year. The ratio considers the weight of total current assest versus total current liabilities.It indicates the finacial health of a company and how it can maximize the liquidity of its current assets to settle debt and payables. Therefore, current ratio is also know as Working Capital Ratio.

Formula:

Current ratio or Working Capital ratio = Current Assets / Current Liabilities.

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

A geometric sequence has the first term a1 = −3 and common ratio r = 1/2 . What is the 8th term?
A geometric sequence has the first term a1 = −3 and common ratio r = 1/2 . What is the 8th term?
What is the current ratio
What is the current ratio
The Maurer Company has a long-term debt ratio of .30 and a current ratio of 1.50....
The Maurer Company has a long-term debt ratio of .30 and a current ratio of 1.50. Current liabilities are $940, sales are $5,175, profit margin is 10.10 percent, and ROE is 18.70 percent. What is the amount of the firm's net fixed assets?
The Caughlin Company has a long-term debt ratio of .38 and a current ratio of 1.60....
The Caughlin Company has a long-term debt ratio of .38 and a current ratio of 1.60. Current liabilities are $940, sales are $6,360, profit margin is 9.7 percent, and ROE is 19.9 percent. What is the amount of the firm’s net fixed assets?
The Maurer Company has a long-term debt ratio of .60 and a current ratio of 1.60....
The Maurer Company has a long-term debt ratio of .60 and a current ratio of 1.60. Current liabilities are $970, sales are $5,150, profit margin is 9.30 percent, and ROE is 18.00 percent. What is the amount of the firm's net fixed assets?
The Maurer Company has a long-term debt ratio of .70 and a current ratio of 1.50....
The Maurer Company has a long-term debt ratio of .70 and a current ratio of 1.50. Current liabilities are $1,000, sales are $5,135, profit margin is 9.50 percent, and ROE is 19.10 percent. What is the amount of the firm's net fixed assets?
The Maurer Company has a long-term debt ratio of .60 and a current ratio of 1.50....
The Maurer Company has a long-term debt ratio of .60 and a current ratio of 1.50. Current liabilities are $980, sales are $5,110, profit margin is 9.50 percent, and ROE is 17.30 percent. What is the amount of the firm's net fixed assets?
The Maurer Company has a long-term debt ratio of .40 and a current ratio of 1.50....
The Maurer Company has a long-term debt ratio of .40 and a current ratio of 1.50. Current liabilities are $970, sales are $5,130, profit margin is 9.30 percent, and ROE is 16.70 percent. What is the amount of the firm's net fixed assets? Multiple Choice $3,571.03 $4,276.38 $5,731.38 $1,904.55 $2,874.55
1) Company's Current ratio 2017 Current ratio = 2.055 2016 Current ratio = 2.077 Explain what...
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...
1) Company's Current ratio 2017 Current ratio = 2.055 2016 Current ratio = 2.077 Explain what...
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...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT