Quick (Acid-Test) Ratio
Current Assets-Inventory 1.04 0.91 0.95 0.74 0.49
I need just a brief liquidity analysis of the attached financials.
In financial analysis, we need qualitative information and try to read between the numbers. We have to ask all the right questions. Over the years, there are some ratios, which have become more popular and handy for rule of thumb analysis of financial statements. Our purpose in this note is not deride them but to advice the reader to use them properly to derive the correct results. Ratio analysis can also help us to check whether a business is doing better this year than it was last year; and it can tell us if our business is doing better or worse than other ...
This explains the steps to conduct the financial analysis of the organization by taking Target as an example.