What is current ratio formula

    • [DOC File]Ratio Analysis. Instructor's Manual

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      2006 RATIO CALCULATIONS. Name Formula. Calculation Result Current Ratio Current Assets. Current Liabilities $43,824. $48,826. 0.90 Quick Ratio Quick Assets. Current Liabilities $6,414 + $2,662. $48,826. 0.19 Cash flow from Operations to Current Liabilities. Cash flow from Operations. Average Current Liabilities $17,633 ($48,826 + $43,182) / 2 0 ...

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    • [DOC File]Financial Ratios

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      Formula: Current Assets / Current Liabilities. Analysis: 1:1 current ratio means; the company has $1.00 in current assets to cover each $1.00 in current liabilities. Look for a current ratio above 1:1 and as close to 2:1 as possible. One problem with the current ratio is …

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    • Financial Ratios and Quality Indicators

      The current ratio indicates the number of dollars of current assets for each dollar of current liabilities; it shows the number of times that current assets will "pay off" the current debts of the facility, and relates to a safety margin. A favorable ratio is > 1.6. Formula: Current Assets Current Liabilities. 2. Acid Test Ratio:

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    • Current Ratio Formula - Examples, How to Calculate Current Ratio

      This ratio can help you in making decisions about equipment replacement. LIQUIDITY RATIOS Current Ratio Current Assets ÷ Current Liabilities Shows the company's ability to meet its current obligations (or pay off debt). Quick Ratio Current Assets - Inventory – Prepaid items ÷ Current Liabilities. This is similar to the Current Ratio.

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    • [DOC File]FINANCIAL STATEMENTS AND RATIO ANALYSIS

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      7-1 a. A liquidity ratio is a ratio that shows the relationship of a firm’s cash and other current assets to its current liabilities. The current ratio is found by dividing current assets by current liabilities. It indicates the extent to which current liabilities are covered by those …

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    • [DOC File]RATIO ANALYSIS - Techshristi

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      Ratio Formula What It Means Liquidity - ability to satisfy short-term debt Current Ratio Current Assets. Current Liabilities Value of liquid assets available to cover short-term debt Quick Ratio Current …

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    • [DOC File]Name

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      This ratio adjusts operating expenses by the amount of income collected to offset the cost of offering services. Guideline: 3% or lower, but changes depending on asset size. Refer to current …

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    • [DOC File]Ratio Analysis

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      RATIO ANALYSIS. A. LIQUIDITY RATIOS - Short Term Solvency. Ratio Formula Numerator Denominator Significance/Indicator 1. Current Ratio Current Assets. Current Liabilities Inventories + Debtors + Cash & Bank + Receivables / Accruals + Short terms Loans + Marketable Investments Sundry Creditors (for goods) + Outstanding Expenses (for services)

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    • [DOC File]HOW TO USE THIS GUIDE TO RATIO CALCULATION

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      FINANCIAL ANALYSIS. A RIGHT WAY FOR FINANCIAL DECISION. Analysis means to put the meaning of a statement in to simple terms for the benefit of a person. analysis comprises resolving the statements by breaking them in to simpler statements by a process of rearranging, regrouping and collection of information broadly the term is applied to almost any kind of detailed enquiry in to financial data.

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    • [DOC File]FINANCIAL RATIOS REPORT

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      Current Ratio. Current Ratio = Total Current Assets. Total Current Liabilities. Items in this table represent percentages of total assets.

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