Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. describe the three categories of ratios used in ra

Describe the three categories of ratios used in ratio analysis. When working on assessing the company...

80.2K

Verified Solution

Question

Finance

Describe the three categories of ratios used in ratio analysis.When working on assessing the company you chose, which of theseratios do you think is the most important indicator of successfulperformance, why

Answer & Explanation Solved by verified expert
3.6 Ratings (586 Votes)
Ratios important to analyse a company Liquidity ratio consists of current quick ratio and cash ratio Current ratio is the ratio of the current assets to current liabilities If current ratio is greater than 1 then the company can pay off its short liabilities through its short term assets Quick ratio is the current assets minus inventories to the current liabilities It focuses on liquidity other than    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Describe the three categories of ratios used in ratio analysis.When working on assessing the company you chose, which of theseratios do you think is the most important indicator of successfulperformance, why

Other questions asked by students

Q

Let (Xn) be a monotone sequence. Suppose that (Xn) has a Cauchy subsequence. Prove that (Xn)...

Advance Math
Q

Use the graph of the given function f to determine the limit at the indicated value...

Advance Math
Q

define investigation techniques and their types to develop the new project?

General Management
Q

Match the following a Strategic Arms Limitation Treaty b Carter Doctrine c The United States...

Biology
Q

The absorbance of a sample as measured by UV visible spectrometry is inversely proportional to...

Biology
Q

A disc of Mass 'M' = 6kg and Radius R = 3m is lying on...

Physics
Q

The two functions y = (3x + 4) and 9/?3x + 4 share either an...

Basic Math
Q

Evaluate the following limit by direct evaluation Change the form of the function if necessary...

Calculus
Q

Use the graph y g x to graph the given function 12 9 y 4g...

Calculus
Q

1 Use integration by parts to find the integral In x ln x dx

Calculus
Q

Taxation and theory Identify and describe the followings that are exempted from taxation. Please provide...

Accounting
Q

Oriole Company purchased, on January 1, 2020, as an available-for-sale security, $65,000 of the 8%,...

Accounting