1. Using the Current ratio, discuss what conclusions you can make about each company’s ability to pay current liabilities (debt). The current ratio is the result of Current Assets divided by Current Liabilities. Bankers and analysts use this ratio to understand a company's ability to pay short-term obligations, its liquidity. A company is generally judged "liquid" if its current ratio is 2-to-1 (though there are differences by industry). Example: Current Ratio=Current Assets Current Liabilities
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Current Ratio The current ratio is probably the best known and most often used of the liquidity ratios. Liquidity ratios are used to evaluate the firm's ability to pay its short-term debt obligations such as accounts payable (payments to suppliers) and accrued taxes and wages. Short-term notes payable to a bank, for example, may also be relevant. If the current ratio was less than 1.00X, then the firm would have a problem meeting its bills. So, usually, a higher current ratio is better than a lower
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The current ratio is very poplar liquidity ratio; it is used to determine the short term liquidity of the company means that enough current assets (Cash, prepaid Insurance, Cash equivalents, Account receivable and Inventory etc) are available with company to meet it short term liabilities obligations. In other words current ratio determines the company ability to pay off its short term liabilities via available current assets. In theory, higher the current of the company better will be the liquidity
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Patton-Fuller Ratio Computation Patton-Fuller Ratio Computation July 8, 2013 HCS/405 Regina Robinson The Eight Basic Ratios 1. Current Ratio (Unaudited) 2009 Current Assets $128,867 ÷ Current Liabilities $23,807= 5.4129877 or 5.413 (5 to 1) 2008 Current Assets $130,026 ÷ Current Liabilities $8,380 = 15.516229 or 15.516 (15 to 1) Current Ratio (Audited) 2009 $128,867 ÷ $23,807= 5.3709833 or 5.371(5 to 1)
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of the current shareholders will be selling their ownership. With the majority of County being owned by three individuals (23% each) and the remaining by 31% owned by 40 individuals, Bluewater may want to purchase the 51% controlling interest if the majority of the shares being sold are those of the 40 individuals owning 31% leaving the controlling position among the three majority shareholders. I think Bluewater could have issues if they do not purchase more than 50%. With the current proposal
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Solutions 13-3,13-4.1,13-4.2 HSA 525 Week_6_Assignment 2 Financial Ratio The financial ratios are used for the purpose of determining the financial performance of an organization. There are various financial ratios which are taken into consideration by the financial analysts. The most important ratio which shall be taken into consideration is the net profit ratio. The net profit ratio of an organization is a particular ratio which is determined by the organization by deducting the expenses incurred
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| ROE | DUPONT Analysis | | Current Ratio | Quick Ratio | Cash Ratio | | NI/Equity | NI/Sales | Sales/Assets | Assets/Equity | CA/CL | (CA-Inv.)/CL | Cash/CL | 2009 | 0.0538 | 0.0708 | 0.4587 | 1.6584 | 1.3182 | 0.7491 | 0.4303 | 2010 | 0.0928 | 0.1073 | 0.5775 | 1.4973 | 2.5551 | 1.1875 | 0.5921 | 2011 | 0.0906 | 0.0994 | 0.5797 | 1.5729 | 3.3915 | 1.6024 | 0.6626 | Has the company drastically increased or decreased its use of debt? There are slight increase and decrease in use of
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quality of operations: the operational risk level of a bank depends on the quality level. Changes on operational level can help reduce current risk by improving quality of operations. 6. Supplement information: information is really vital and it will help for the bank to pinpoint which contributes to its current operational risk. 7. Adjust on the current level of operational risk: this will allow for the management to set its priorities. Source: Anders, U., & Sandstedt, M. (2001)
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Summary – At This Point In Time No additional ACOE districts should be brought online to Escape OL5 software. The current districts on Escape OL5 in Alameda County remain in an implementation phase expectation of support. * OL5 is not yet a turnkey software package- * Still in development with goal of effective & efficient processes * Districts are part of the “debugging” * CRs appear to languish for some time & priority is determined by whom? * Frequent
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the current labor productivity to two alternative methods that would help them with the increase. A cost-benefit matrix will be provided to show comparison of current labor productivity, alternative one and alternative two labor productivity as well as, the effects the alternatives would have, and what the benefits of networking strategies to streamline operational procedures would be. Taylor Inc Cost Benefit Matrix | |Current
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