Purchase Solution

Current Ratios Evaluated

Not what you're looking for?

Ask Custom Question

The purpose for the current ratio is to evaluate the firm's ability to:

a. generate sales with a given level of current assets
b. utilize current assets profitably
c. pay its bills in the short run
d. effectively use borrowed funds

Purchase this Solution
Solution Summary

The expert evaluates the current ratios for a firm's ability.

Solution Preview

The current ratio is another test of a company's financial strength. It calculates how many ...

Purchase this Solution
Free BrainMass Quizzes
SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Operations Management

This quiz tests a student's knowledge about Operations Management

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

View More Free Quizzes
Related BrainMass Solutions

  • Performance Factors

    251596 Performance Factors Scenario 1: If you were general manager of a division, on which three key ratios would you choose to have your unit's financial performance evaluated?

  • Analyze the financial performance using Financial Ratios

    If shares in a company are traded in a financial market, the market price of the shares is used in certain financial ratios. A firm's performance can be evaluated using financial ratios.

  • Financial Analysis of Raytheon

    (Current Ratio, Times Interest Earned TIE, Basic earning power ratio, Price/earnings P/E ratio) c. Compare the ratios calculated against industry averages.

  • Financial analysis

    Liquidity ratios show the relationship of a firm's or a division's cash and other current assets to its current liabilities. These types of ratios include current ratio and quick or acid test ratio.

  • Ratios and budgeting

    285273 Calculate Stone Co. ratios; Hinich Entertainment purchased, collections, AR, AP, Cash 1.

  • Impact of the Sarbanes-Oxley Act

    Suggest four (4) leading financial ratios that will be evaluated and how each will impact the company's decision to obtain expansion funds. Determine whether the results of the ratios would alter the decision to go public.

  • Accounting: Ratio Analysis in Financial Health

    Ratios are attached. 2008 Ratio Calculations Wal-Mart 2008 Current ratio = (Current Assets)/(Current Liabilities) Current ratio = (47,585 (m))/(58,454 (m)) Current ratio = 0.814 Debt Ratio = (Total Debt)/(Total Assets) Debt Ratio =

  • Ratio calculation

    Coca-Cola is evaluated in 2008 and 2009.

  • Use of financial ratios

    To improve the ratios, the company should increase the current assets and decrease the current liabilities to improve the liquidity.

View More Related Solutions